GBP/USD: UK inflation jumped to its highest level since June 2013 in May


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.66% against the USD and closed at 1.2752, after recent data indicated a more-than-expected rise in UK’s inflation.

Britain’s consumer price index (CPI) advanced more-than-expected by 2.9% on an annual basis in May, surging to a four-year high level, thus exerting further pressure on the Bank of England (BoE) to try and limit spiking inflation. In the previous month, the CPI had risen 2.7%, while markets anticipated for it to gain 2.7%.

In the Asian session, at GMT0300, the pair is trading at 1.2750, with the GBP trading slightly lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2676, and a fall through could take it to the next support level of 1.2601. The pair is expected to find its first resistance at 1.2791, and a rise through could take it to the next resistance level of 1.2831.

Moving ahead, traders would keep a close watch on Britain’s ILO unemployment rate for the three months to April, slated to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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