The GBP/USD pair remains close to its recent multi-month low as markets turn their attention to upcoming CPI reports from the UK and the US

The GBP/USD pair faced renewed pressure on Tuesday, edging closer to retesting its multi-month low of 1.2099 after multiple failed attempts to sustain a recovery near the 1.2250 zone.

Bearish momentum resumed after a brief correction, with a break below 1.2099 (also marking the monthly cloud base) paving the way for potential tests of the 1.2037/1.2000 region (the October 4, 2023 low and psychological support).

Daily technical indicators maintain a strong bearish configuration, although oversold conditions may temporarily pause further downside action.

Any corrective upticks are expected to remain capped below the 1.2350/1.2360 region (falling 10DMA and broken 76.4% Fibonacci support), especially as dollar-positive fundamentals continue to dominate.

While December’s US PPI report missed expectations, the year-over-year figure still rose above the previous month, signaling persistent inflation and dimming prospects for significant Fed rate cuts in 2025.

Market attention now shifts to December inflation data from both the UK and US, scheduled for release on Wednesday. Expectations of heightened price pressures and the UK’s fragile economic state could weigh further on the pound.

Meanwhile, the dollar stands to benefit from the likely implementation of tariffs proposed by the Trump administration, even with recent indications that the rollout may be gradual initially.

Res: 1.2250; 1.2299; 1.2360; 1.2400
Sup: 1.2099; 1.2069; 1.2037; 1.2000