For the 24 hours to 23:00 GMT, the GBP declined 3.62% against the USD and closed at 1.2557, after UK’s consumer inflation slowed to a 4-year low level in May.
On the data front, UK’s consumer price inflation slowed to 0.5% on an annual basis in May, recording its lowest level since 2016 and compared to a level of 0.8% in the previous month. Moreover, the retail price index rose 1.0% on a yearly basis in May, undershooting market forecast for a rise of 1.2% and compared to a rise of 1.5% in the earlier month. Furthermore, the non-seasonally adjusted output producer price index fell 0.3% on a monthly basis in May, compared to a revised fall of 0.8% in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.2533, with the GBP trading 0.19% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2500, and a fall through could take it to the next support level of 1.2466. The pair is expected to find its first resistance at 1.2578, and a rise through could take it to the next resistance level of 1.2622.
Moving forward, traders would keep a watch on Bank of England minutes and interest rate decision, slated to release in a later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
