Consumer prices in the United Kingdom were tame in December. On a year over year basis, headline CPI rose just 1.3%. This was below the estimates of a 1.5% increase and down from 1.5% in November.
The pound sterling was, however, unmoved by the report.
GBP/USD Consolidating Near the Bottom
Cable is gradually rising off the lows near 1.2960. Price action is forming a higher low currently. This will potentially indicate a move to the upside as the bullish divergence is forming.
The upside target remains at the 1.3100 region, with the possibility to breakout slightly higher. However, given the fact that the lower support at 1.2960 is not tested, we could see a move lower.
