GBP/USD Slides as UK Inflation Data Revives December BoE Rate Cut Bets
GBP/USD faces renewed selling pressure as softer-than-expected UK inflation data increases the likelihood of a Bank of England rate cut in December. The pair has retreated from recent highs as traders reassess the BoE's monetary policy trajectory following the inflation print. UK CPI data came in below forecasts, easing concerns about persistent price pressures and giving the central bank more flexibility to consider easing policy. This development contrasts with the Federal Reserve's cautious stance, creating a divergence that favors USD strength. EUR/GBP has also reacted to the data, with the cross rate adjusting as market participants recalibrate expectations for both the BoE and ECB policy paths. Technical levels suggest GBP/USD may test support near 1.3000 if dovish momentum persists, while resistance remains at recent highs around 1.3150.
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