The British pound continues to trade in a narrow range against the U.S dollar, ahead of the release of key October inflation data from the United Kingdom economy. The GBPUSD pair currently trades around the 1.3115 technical level, as traders remain cautious about the volatile CPI data. This morning’s UK inflation release takes on extra importance, as the Bank of England watches inflation closely, and may decide to hike interest rates again, if inflation in the United Kingdom remains elevated.
The GBPUSD pair remains bearish while trading below the 1.3130 technical level. Worse than expected UK CPI data may see the pair fall towards the 1.3109 and 1.3058 levels. Extended support is found at 1.3038 and 1.2980.
Should UK CPI data come in better than expected later today, the GBPUSD pair will likely advance towards the 1.3168 and 1.3200 levels. Extended resistance is found at 1.3268 and 1.3320.
