Investing.com - The pound remained close to 11-month lows against the U.S. dollar on Tuesday, as lower than expected U.K. inflation data continued to weigh, as well as growing concerns over the outlook for global economic growth.
GBP/USD hit 0.9468 during U.S. morning trade, the pair's lowest since November 2013; the pair subsequently consolidated at 1.5923, tumbling 1%.
Cable was likely to find support at 1.5852 and resistance at 1.6128, Monday's high.
The pound weakened broadly after data earlier showed that U.K. inflation data slowed to a five-year low last month.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation slowed to 1.2% last month from 1.5% in August. Analysts had expected U.K. CPI to fall to 1.4% in September.
Month-over-month, consumer price inflation was flat in September, after rising 0.4% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a rate of 1.5% last month, down from 1.9% in August. Analysts had expected core prices to rise 1.8% in September.
Meanwhile, market sentiment remained under pressure amid global economic growth concerns after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 last week.
Markets were also jittery amid the widening Ebola epidemic, as the U.K. announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport.
Health Secretary Jeremy Hunt said it is likely that the virus will be diagnosed in the U.K. by end of year.
Sterling was also lower against the euro, with EUR/GBP gaining 0.32% to 0.7953.
Adding to investors' concerns, data on Tuesday showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell by 10.5 points to minus 3.6 this month from September’s reading of 6.9.
A separate report showed that industrial production in the euro zone declined 1.8% in August, confounding expectations for a 1.6% fall.