GBP/USD: UK’s annual inflation missed market expectations in October


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.37% against the USD and closed at 1.3162.

Data indicated that British consumer price index (CPI) climbed less-than-expected by 3.0% on an annual basis in October, signalling that the impact of the Pound’s steep depreciation on inflation may have begun to wane. However, the index retained its 5-year high level. In the previous month, the CPI had registered a rise of 3.0%, while markets were anticipating for an increase of 3.1%.

In the Asian session, at GMT0400, the pair is trading at 1.3142, with the GBP trading 0.15% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.3082, and a fall through could take it to the next support level of 1.3023. The pair is expected to find its first resistance at 1.3194, and a rise through could take it to the next resistance level of 1.3247.

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

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