Pound Sterling Price News and Forecast: GBP dips to weekly lows following soft UK inflation figures

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British Pound dips to weekly lows following soft UK inflation figures

The British Pound (GBP) extends losses against the US Dollar (USD) on Wednesday, with the GBP/USD pair hitting a weekly low of 1.3410 at the time of writing. Softer-than-expected UK Consumer Price Index (CPI) figures have provided further reasons for the Bank of England (BoE) to keep interest rates on hold in the coming months, which has hurt speculative demand for the Cable.

Data released by the UK Office for National Statistics earlier on Wednesday revealed that consumer prices grew at a 2.8% year-on-year (YoY) pace in May, unchanged from April, while monthly inflation eased to 0.2%, below the 0.4% expected and well below April’s 0.7% reading. The Core CPI ticked up to a 2.6% yearly growth, from 2.5% in the previous month, but also below the 2.7% anticipated by the market consensus. Read more...

GBP/USD Elliott Wave: Cable finalizing its downtrend

Since topping at 1.3589 on April 14, GBP/USD has been grinding sideways to lower in an obvious corrective setback. We anticipate another dip is needed before the bulls are allowed to roam.

The current Elliott wave pattern suggests GBP/USD is nearing the end of a corrective wave (ii). Once complete, GBPUSD would accelerate higher multiple hundred pips in wave (iii). Read more...

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FXStreet Team

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