GBP/USD extends the UK CPI-led slide near 1.3280

The selling pressure behind the pound picked-up pace over the last hour, knocking-off GBP/USD deeper into the red zone below 1.3300, as markets continue to digest below estimates UK CPI figures.

GBP/USD dragged down by weaker CPI

Currently, GBP/USD drops -0.42% to fresh session lows of 1.3277, having failed to resist 1.33 handle. The cable remains relentlessly sold-off into disappointing inflation report from the UK economy, which showed that the consumer prices rose below expectations in August.

On monthly basis, the UK inflation figures nearly missed estimates, rising +0.3% last month, as compared to -0.1% seen previously, and +0.4% forecast.

Moreover, the poor UK data fuels speculation that the BOE may consider further easing measures at its policy review meeting on Thursday, thus, weighing further on the GBP/USD pair.

Further, the bears fight back control after the previous rebound, as subdued trading activity witnessed across the European markets combined with weaker oil prices, also undermine the sentiment behind the risk currency GBP.

Looking ahead, focus shifts towards the UK jobs report due tomorrow in absence of significant economic data due on the cards in the US session ahead.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3351 (post-Brainard high), above which 1.3377 (Sept 8 high) would be tested. On the flip side, support is seen at 1.3265 (daily S1) below that at 1.3237 (20-DMA).