GBP/USD Struggles Following Weaker UK Inflation Report Today

Written by Emily J. Thompson, Senior Investment Analyst

Source: InvestingliveForex

Updated: Dec 17 2025

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Source: InvestingliveForex

UK CPI Report Impact: The UK CPI report for November missed estimates, leading to expectations of a Bank of England (BOE) rate cut this week and potentially more cuts next year, which has pressured the pound against the dollar.
GBP/USD Performance: GBP/USD is currently trading around 1.3330, down 0.7% on the day, with a significant shift towards a bearish bias as it breaks below key moving averages for the first time since late November.
Market Sentiment and Rate Cuts: Traders are now pricing in approximately 69 basis points of rate cuts through 2026, with the next anticipated cut moved forward to April 2026 from July 2026, reflecting a slight increase in bearish sentiment.
Technical Analysis and Future Outlook: The daily chart indicates a potential breakdown below key moving averages, suggesting further declines for GBP/USD, especially if support around 1.3300 fails, while the dollar's volatility may complicate market movements as the year-end approaches.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.