Following the release of stronger-than-expected US inflation data, selling of the GBP/USD currency pair increased. with losses extending to the support level of 1.2672, the lowest for the currency pair in three months.
The US dollar's gains have increased following the data, which could disrupt the US Federal Reserve's policy easing path. In contrast to the Bank of England, which is following a policy of cutting interest rates.
What are the reasons for the recent gains in the US dollar?
According to forex market trading, the US dollar's gains have increased for seven consecutive weeks, supported by a series of inflation figures that exceeded expectations. Also, speculations of higher inflation in 2025 have increased after Donald Trump's victory in the presidential election last week. Accordingly, further gains are expected for the US dollar if Trump returns to his old plans of imposing tariffs and tariff wars with other global economies. Furthermore, this will increase US inflation rates and thus the US Federal Reserve will return to the tightening path again.
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How far will the GBP/USD losses go?
The rule says that higher interest rates for a longer period means a higher value for the US dollar for a longer period. Accordingly, the downward trend for the pound against the US dollar GBP/USD will become stronger. Previously, we had indicated in the technical analysis and before Trump's victory that stability below the 1.3000 level would strengthen the bears' control. Technically, the closest decline stations for the pound against the dollar are 1.2600, 1.2550 and 1.2470 respectively. Obviously, these in turn will move the technical indicators towards strong oversold levels. In contrast, the general trend will change to an upward one. According to the performance on the daily chart attached on the pound against the US dollar GBP/USD, return to the resistance levels of 1.3000 and 1.3150 respectively.
Technical forecasts and signals for the GBP/USD pair today:
With strong selling pressure, we advise you, dear reader, to adopt a strategy of selling the GBP/USD from every upward level. You can sell GBP/USD from the resistance levels of 1.2775, 1.2830, and 1.2900, respectively, without taking risks and placing take-profit and stop-loss orders to prevent your trading account from suffering losses that you cannot bear.
You can find more GBP/USD signals and many free live trading signals on our website.
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