• GBP/USD breaches key support levels as it loses more than 1%.
• US headline inflation defies the Fed’s intentions to cut rates and climbs.
• Technical outlook suggest that further GBP/USD downside is seen.

The Pound Sterling collapses late on Wednesday during the North American session, down by more than 1% against the US Dollar, following the release of US inflation data. Expectations for fewer rate cuts by the US Federal Reserve prompted a flight to the Greenback, which reached a new year-to-date (YTD) high via the US Dollar Index (DXY). The GBP/USD trades at 1.2534 after hitting a high of 1.2708.