The GBP/USD pair plunged to 1.4251 ahead of the release of UK inflation data, following a sharp decline in European stocks' opening. Figures came in mixed, as February CPI rose 0.3% compared to a year before as expected, and 0.2% monthly basis, missing expectations. The core reading remained at 1.2%. Producer prices were generally above expected, but year-on-year input fell by 8.1%, well below market's expectations.
The Pound found some limited demand around the mentioned low, but the GBP/USD pair has been unable to recover the 1.4300 level, and trades near its daily low. The 4 hours chart shows that the price is breaking below its 200 EMA, while the 20 SMA is turning horizontal far above the current level, in the 1.4410 price zone. In the same chart, the technical indicators head sharply lower below their mid-lines, nearing oversold levels, and suggesting further slides are likely, particularly on a break below 1.4250, a strong static support.
Such move could see the pair extending down to the 1.4200 region, where the pair has the 38.2% retracement of this year's decline, ahead of 1.4160. A recovery above 1.4320 on the other hand, will put the pair back in the bullish track, with 1.4360 and 1.4410 as the next intraday resistances.
View the live chart of the GBP/USD
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