GBP/USD showed some bullish momentum last week, surpassing the resistance zone around 1.2450 that rejected the price twice in December and January. However, buyers were unable to hold the price further and the currency pair fell after receiving some decent data from the US.
Look at the GBP/USD Looking at the daily chart, it seems that the buyers tried to break out of the range but failed to sustain it. Nonetheless, the uptrend remains on the daily chart as the moving averages are turning to support. The 20 SMA (grey) continued its decline yesterday with a small rally.
UK average earnings remained stable at 5.9% in the first quarter, but slowed to 5.1%, helping to keep GBP stable. Today’s inflation report showed a lull, but the consumer price index rose above 10% for the first time since June 2022.
UK Consumer Price Index Inflation Report for March
- March CPI YoY +10.1% vs +9.8% Forecast
- CPI YoY in February was +10.4%
- CPI MoM +0.8% vs +0.5% forecast
- Previous zCPI MoM +1.1%
- Core CPI YoY +6.2% vs +6.0% forecast
- Leading Core CPI YoY +6.2%
- Core CPI +0.9% m/m vs +0.6% forecast
- Previous Core CPI +1.2% m/m
UK headline annual inflation remains in the double digits, with core annual inflation unchanged in March compared to February. The monthly reading is also hotter than expected, putting further pressure on his BOE to raise rates next month.
In detail, the rising contributions to monthly inflation come from food prices, recreation and culture, offset by falling contributions from motor fuels, housing and household services.
GBP/USD
