GBP/USD Dives After Stronger than Expected US Inflation & Fed Minutes

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GBP/USD fell more than 1%, breaking below key support.

Overall U.S. inflation continues to rise, running counter to the Fed’s prospects of cutting interest rates.

The technical outlook points to further downside for GBP/USD.

GBP/USD tumbled late in the U.S. session on Wednesday, losing more than 1%, following the release of U.S. inflation data. The market maintained expectations that the Federal Reserve will reduce the number of interest rate cuts, causing the dollar to be sought after, with the dollar index hitting a new high so far this year. GBP/USD is trading at 1.2534 after hitting a high of 1.2708.