GBP/USD extends backslide into a third straight day

• GBP/USD shed weight for a third straight day on Tuesday.
• Cable backslid 0.3% on the day, falling back into key technical levels.
• A fresh batch of hot inflation data from the UK pummeled the Pound.

GBP/USD took another leg lower on Tuesday, falling around three-tenths of one percent and skidding into key moving averages. Key Consumer Price Index (CPI) inflation data from the United Kingdom (UK) sent Cable bidders reeling, as market bets of another Bank of England (BoE) rate cut before the end of the year slipped below 50%.

Cable traders now pivot to Thursday, where the latest batch of Purchasing Managers Index (PMI) survey results are due on both sides of the Atlantic. The Federal Reserve (Fed) Bank of Kansas also kicks off this year's annual economic symposium on Thursday in Jackson Hole. UK PMI figures are expected to tick slightly higher, while US PMI aggregated survey results are expected to show a slight decline.

Jackson Hole will be on the general market radar throughout the remainder of the week and heading into the weekend, but the key event will be Fed Chair Jerome Powell's speech during the symposium on Friday. The Fed is still battling steep interest rate cut expectations from both general markets and the Trump administration, but still-warm-to-the-touch US inflation data may throw a wrench in the works.

GBP/USD price forecast

GBP/USD sank for a third straight day on Thursday, chalking in another technical touch of the 50-day Exponential Moving Average (EMA) near 1.3450. The Dollar-Pound pairing has seen steady declines since flubbing a bullish push for the 1.3600 handle last week, but middling technical oscillators and a lack of meaningful momentum to the short side is keeping the pair bolstered into long-term bull country.

GBP/USD daily chart