GBP/USD hits fresh session low after US CPI release

The GBP/USD pair maintained its offered tone and extended its slide further towards mid-1.3100s following the release of US inflation data for August. 

US consumer inflation for August, as measured by CPI, came-in at 1.1% y-o-y vs 1.0% expected, while core CPI (excluding food and energy) also printed a higher-than-expected reading of 2.3%. Although the data might not have altered market expectations for Fed monetary policy stance at next week's meeting, but provided a temporary boost for the greenback.

Meanwhile, the British Pound remained well offered across the board after BOE, at its monetary policy meeting on Thursday, left doors open for a further monetary easing in November. 

Next on tap would be Reuters/Michigan consumer sentiment index, which is expected to have risen to 90.8 for September as compared to 89.8 recorded in August.

Technical levels to watch

A follow through selling pressure below 1.3150 support now seems to drag the pair below 1.3100 handle towards testing its next major support near 1.3080-60 region.

On the flip side, a sustained recovery above 1.3200 handle now seems to confront strong resistance near 1.3240 region. Only a decisive strength above 1.3240 strong resistance would negate possibilities of any further downslide and is likely to boost the pair back towards reclaiming 1.3300 handle.