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GBP/USD is trading at near 1.3850, up from the lows after the UK reported CPI of 3.2% YoY in August, higher than expected. The US dollar is losing some ground amid an improving market mood.
GBP/USD is suffering from downside momentum on the four-hour chart, albeit trading above the ascending trendline The failure to hold above the quadruple top of 1.3895 sent the pair back to the middle of the all-too-familiar 1.3725-1.3895 range, where it seems balanced.
Support awaits at 1.3790, the daily low, and then by 1.3725 mentioned earlier. Further down, the next lines to watch are 1.3680 and 1.3635.
The Cable is capped at 1.3850, ahead of the 1.3895 level mentioned earlier. Further above, Tuesday's swing high of 1.3915 is the next line to watch
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