GBP/USD Drops On Weak UK CPI Data

GBP/USD drops on weaker than expected UK CPI data

The GBP/USD treaded water to touch the 1.4396 low after a lower than expected UK inflation report. The GBP/USD hovered lower on a stronger dollar after strong US CPI data.

The GBP/USD remains under pressure ahead of the UK unemployment report and ahead of “Brexit” votes. Cutting 1.4400 will provide a lower leg toward 1.4365 and 1.4330 respectively.

However, strong UK wage growth may spark a bullish reaction in GBP/USD, as it plays a big role in the Bank of England (BOE) normalizing monetary policy. Breaking 1.4480 will push the GBP/USD higher towards 1.4500 and 1.4525.

GBP/USD Chart

Disclaimer: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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