Photo by Colin Watts on Unsplash
 

• GBP/USD lost even more ground on Wednesday, falling for a fifth straight day.
• Cable traders have an increasingly steep hole to dig themselves out of.
• US economic data will take on newfound importance this week in the wake of a cautious Fed.

GBP/USD sank for a fifth straight session on Wednesday, falling as the US Dollar (USD) catches a broad-market bid after the Federal Reserve (Fed) held rates steady and stuck to its stubborn wait-and-see stance, trimming hopes for a September rate cut. With odds of a rate cut on September 17 flying out the window, newfound market pressure will be on a hefty raft of economic data coming out of the United States (US) throughout the back half of the trading week.

US PCE inflation, due on Thursday, is expected to accelerate slightly, with analysts anticipating an uptick to 0.3% MoM in June compared to the previous month’s 0.2%. A resurgence of inflationary pressure is the last thing investors want, as it could spell doom for ongoing rate cut expectations.

Friday’s NFP jobs report could add further fuel to rate hold fears. July’s NFP net employment gains report is expected to hold in positive territory after seasonal adjustments. However, the figure is expected to ease to 110K from June’s 147K.

GBP/USD price forecast
 

A fifth straight down day has put Cable on a collision course with the 200-day Exponential Moving Average (EMA) near 1.3131. Price action has pivoted firmly bearish after GBP/USD flubbed a bullish climb toward 1.3600, although new short entries will face challenges with technical oscillators already pinned in oversold territory.

GBP/USD daily chart
 

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