• GBP/USD hamstrung near 1.2300 after the early day's peak into 1.2337 failed to extend.
• The Pound Sterling fell to an intraday low of 1.2268 and finds bids hung up in the midrange.
• An uptick in US PPI figures is keeping the US Dollar on-balance as investors to look ahead to CPI.

The GBP/USD kicked off Wednesday trading near 1.2290, sagging into the day's low of 1.2268 before an early US session rally into 1.2337, but market flows into the US Dollar (USD) sent the pair back into the midrange near where the trading day kicked off, testing the 1.2300 handle.

US Producer Price Index (PPI) figures came in above expectations, printing at 2.7% versus the expected 2.3%, and the previous reading getting revised upwards from 2.2% to 2.5%.

The Federal Open Market Committee's (FOMC) latest published meeting minutes were largely a non-starter for the GBP/USD, with the Federal Reserve (Fed) noting that risks to achieving their long-term inflation goal continue to stick around longer than many expected.

FOMC minutes: Members agreed rates should stay restrictive for some time

Investors will now be looking ahead to Thursday's US Consumer Price Index (CPI) release, which is anticipated to decline from 2.7% to 2.6% for the annualized headline reading into September.

Before that, though, Pound Sterling (GBP) traders will want to keep an eye out for UK Gross Domestic Product and production figures.

UK Gross Domestic Product is forecast to come in at 0.2% against the previous -0.5%, while Industrial Production for August is seen printing at -0.2% (previous -0.7%), with Manufacturing Production for the same period is seen declining 0.4% against the previous 0.8% decline.

GBP/USD Technical Outlook

The Pound Sterling is trading down from the day's early high against the US Dollar, testing ground below 1.2300 and struggling to find lift. The pair is catching technical support from the 50-hour Simple Moving Average (SMA) near 1.2270, with the overall near-term trend pushing bullish from the 200-hour SMA near 1.2180.

On the daily candlesticks, the Pound Sterling has caught a much-needed lift against the Greenback, climbing higher and closing in the green for the past five consecutive trading days. Technical resistance is sitting close by from the 200-day SMA near 1.2442, with a bearish 50-day SMA accelerating into the downside and set for a bearish cross of the longer moving average.

GBP/USD Hourly Chart

GBP/USD Daily Chart

GBP/USD Technical Levels