The 200-hour simple moving average failed to keep the rate up. Moreover, the support cluster of technical levels from 1.2900 to 1.2924 also failed.
By the middle of Thursday's London trading hours, the GBP/USD currency exchange rate had reached the 1.2880 level.
UK Consumer Price Index
The British Pound appreciated against the US Dollar, following the UK CPI release on Wednesday at 09:30 GMT. The GBP/USD exchange currency rate gained 22 pips or 0.17% after the release. The Pound continued trading at the 1.3020 level against the Greenback after the release.
The Office for National Statistics released the UK CPI data, which came out better-than-expected of 1.8% compared with the forecast of 1.6%.
According to the official release: "The largest upward contributions to the change in the CPIH 12-month inflation rate between December 2019 and January 2020 came from gas and electricity prices; fuels and lubricants; clothing; and airfares."
Economic Calendar
No more data is expected to impact the GBP/USD during this week. Next week's event analysis is expected to be release late during Thursday's European trading hours.
GBP/USD short-term review
In regards to the near term future, the pair was expected to reach the 1.2850 level, which should provide psychological support to the currency exchange rate.If this level would fail to provide support, the GBP/USD would next aim at the 1.2830 level, where a monthly pivot point was located at.
On the other hand, as the rate has declined sharply, it could consolidate by trading sideways. A consolidation might occur just above the 1.2850 level.
Hourly Chart
On the daily candle chart, the rate has broken out of the squeeze between the 55 and 100-day simple moving averages. Due to that reason a sharp move down is expected.
Meanwhile, the pair has no support on the chart as low as 1.2800. It is the first target of the described possible decline.
Daily chart
Meanwhile, trader orders were set to buy. In the 100-pip range, 56% of orders were to buy and 44% were sell orders.
Previously, the pending trade orders were 54% to buy.