GBP/USD: UK’s annual inflation advanced at its weakest pace in 13 months in April


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.55% against the USD and closed at 1.3358, after weaker-than-expected inflation figures in the UK diminished the possibility of a Bank of England (BoE) interest rate hike.

Data revealed that Britain’s consumer price index (CPI) rose 2.4% on an annual basis in April, undershooting market expectations for a gain of 2.5% and hitting its lowest level since March 2017. The CPI had climbed 2.50% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3361, with the GBP trading slightly higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3304, and a fall through could take it to the next support level of 1.3247. The pair is expected to find its first resistance at 1.342, and a rise through could take it to the next resistance level of 1.3479.

Going ahead, investors would closely monitor the release of UK’s retail sales data for April, due in a few hours. Also, a speech by the BoE Governor, Mark Carney will be eyed by market participants.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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