The latest inflation statistics from the UK’s Office for National Statistics (ONS) showed that consumer prices rose sharply in January. Headline inflation rose to a six-month high, rising 1.8% on the year. This comes after a tame inflation reading of 1.3% in the prior month. The gains came on the back of higher oil prices.
GBP/USD Unimpressed by Higher Inflation Report
The pound sterling brushed aside the higher inflation report and is trading weaker on the day. The declines are pushing GBPUSD back below the support area of 1.2960. But the declines might be short-lived for the moment. With the Stochastics likely to form a bullish divergence, there is scope for a rebound.
