Britain’s Inflation Surprisingly Advanced To A Six-Month High Level In August

Fundamental analysis of Forex market

For the 24 hours to 23:00 GMT, the GBP declined 0.17% against the USD and closed at 1.3142.

On the data front, UK’s consumer price index (CPI) unexpectedly climbed to a six-month high of 2.7% on a yearly basis in August, defying market consensus for a reading of 2.4%. In the prior month, the CPI had advanced 2.5%. Meanwhile, the nation’s retail price index rose 0.9% to a level of 284.2 on a monthly basis in August, higher than market expectations to record a reading of 283.4. The index had registered a reading of 281.7 in the previous month. Additionally, the house price index jumped 3.1% on a yearly basis in July, rising at its slowest pace in five-years and overshooting market anticipation for a gain of 2.7%. In the preceding month, the index had recorded a revised rise of 3.2%.

In the Asian session, at GMT0300, the pair is trading at 1.3149, with the GBP trading 0.05% higher against the USD from yesterday’s close.

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The pair is expected to find support at 1.3094, and a fall through could take it to the next support level of 1.3038. The pair is expected to find its first resistance at 1.3210, and a rise through could take it to the next resistance level of 1.3270.

In absence of key economic releases in the UK today, traders would keep an eye on global macroeconomic releases for further direction.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.