The GBP/USD pair tried hard to rise back above 1.3050 levels, but the bears continue to retain control, despite downbeat UK CPI data and fresh broad based USD selling.
GBP/USD: Focus shifts to Carney’s speech
The spot is seen making minor-recovery mode over the last hour, as markets continue to assess the latest UK CPI report, which showed a downtick in the UK price pressures in the month of June.
Markets now believe that an unexpected drop in the UK’s inflation rate is likely to lift the pressure of the BOE, as the BOE policymakers were concerned about the inflation overshooting the central bank’s target.
At the same time, however, the data also suggests signs of cooling economic growth, as consumer spending drops. Hence, keeping the renewed downside momentum intact in Cable.
All eyes now shifts towards the BOE Governor Carney’s speech for his views on the latest inflation figures and its implications on the central bank’s interest rates outlook.
GBP/USD levels to consider
Valeria Bednarik, Chief Analyst at FXStreet noted, “Declines are expected to remain moderate, given the absence of dollar's demand, but a downward acceleration below 1.3000 should lead to a test of the 1.2960 region, while below this last, the slide can extend down to 1.2920. The immediate resistance comes at 1.3060, Monday's low, with a recovery above it favoring further gains towards the 1.3110/20 region.”
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