The GBP/USD forecast indicates a sudden drop after UK inflation figures missed forecasts. The unexpected decline in price pressure has increased bets for a BoE rate cut. Meanwhile, dollar strength continued as Fed policymakers shifted to a cautious tone.Data on Wednesday showed that UK inflation dropped sharply from 2.2% to 1.7% in September. Meanwhile, analysts were expecting it to increase by 1.9%. The softer figures put more pressure on the Bank of England to lower borrowing costs. Furthermore, services inflation, a key measure for the central bank, plunged from 5.6% to 4.9%. After the report, market participants were pricing a 90% chance of two 25-bps rate cuts this year. Consequently, sterling fell sharply against the dollar. Inflation is now below the central bank’s target. Therefore, there is a risk it will keep sliding to unhealthy levels, forcing the BoE to lower borrowing costs quickly. Meanwhile, Fed policymakers have become cautious recently after data showed a resilient economy and unexpectedly high inflation. Mary Daly noted that future rate cuts will depend on incoming data. Meanwhile, Raphael Bostic said he expects one more rate cut this year. Traders are now watching the upcoming retail sales report for more clues. A bigger-than-expected jump in sales will likely increase the cautious Fed tone. On the other hand, soft figures will raise bets for a November rate cut. GBP/USD key events todayMarket participants will keep digesting the UK CPI news as there won’t be more high-impact reports. GBP/USD technical forecast: Bears break 1.3000 levelGBP/USD forecastOn the technical side, the GBP/USD price has collapsed below the 1.3051 support level, strengthening the bearish bias. The move comes after a false bullish break above the 30-SMA. Initially, GBP/USD consolidated between the SMA and the 1.3051 support level. The price now trades far below the SMA, with the RSI nearing the oversold region. It has made a lower low, confirming a continuation of the previous downtrend. Given the solid bearish bias, the price might soon revisit the 1.2950 level. Here, it might pause as the SMA catches up before making new lows.More By This Author:USD/CAD Price Analysis: CPI-led Rally Fades Below 1.3800GBP/USD Price Analysis: Sterling Gains Despite Downbeat DataAUD/USD Outlook: Aussie Nosedives After RBA Minutes