GBP/USD keeps the red near YTD lows post-US data

   “¢   Softer UK CPI figures prompt some fresh selling on Wednesday.
   “¢   The USD bullish run pauses and helps ease the bearish pressure.

The GBP/USD pair maintained its heavily offered tone through the early North-American session, albeit seems to have found decent support ahead of the key 1.30 psychological mark.  

The pair extended overnight sharp retracement slide and remained under some selling pressure for the second consecutive session on Wednesday. The bearish slide accelerated further, dragging the pair to a fresh YTD low level of 1.3010 on the back of softer than expected UK consumer inflation figures.  

Meanwhile, the US Dollar bulls took a brief pause following the release of disappointing US housing market data – building permits and housing starts and now seems to collaborate towards easing the prevalent strong bearish sentiment surrounding the major.  

It would now be interesting to see if the pair is able to find any genuine buying interest or continues with its bearish slide amid diminishing prospects for a BoE interest-rate hike move on Aug. 2.

Technical levels to watch

The previous YTD low near mid-1.3000s, set on June 28, might now act as an immediate resistance, above which a bout of short-covering could lift the pair back towards the 1.3100 handle.  On the flip side, a follow-through weakness below the 1.30 handle has the potential to continue dragging the pair further towards its next support near the 1.2950-40 region.