GBP Breaking News: Pound Unmoved After UK CPI Beat

(GBP)Pound steady after UK CPI dip. BoE watches inflation amid global tensions; GBP/USD analysis indicates a potential bearish breakout. 

In recent data released by the UK’s Office for National Statistics, the country’s Consumer Price Index (CPI) displayed a modest decline in headline and core inflation figures despite slightly surpassing initial forecasts. Moderation in food, non-alcoholic beverages, and household goods caused the fall, partially countered by higher motor fuel costs from increased crude oil prices.

While meeting expectations, the report highlights the persistent inflationary pressures within the UK economy. However, there is a glimmer of hope as the Producer Price Index (PPI) has decreased, indicating a potential future drop in CPI figures. The Bank of England (BoE) closely monitors this trend as it prepares for its November meeting.

GBP Breaking News – Pound Unmoved After UK CPI Beat

The announcement led to a brief uptick in the British pound against the US dollar, although market pricing expectations remained unchanged. The BoE, like many global central banks, is likely to maintain a cautious stance in light of escalating geopolitical tensions in the Middle East. As such, upcoming data, particularly the jobs report scheduled for October 24, will be scrutinized to determine the BoE’s next course of action.

Technical Analysis: GBP/USD

the currency pair GBP/USD is trading within a bearish flag formation near the psychological level of 1.2200. Bears are optimistic about a potential breakout below the flag support, especially with the emergence of a death cross. The Relative Strength Index (RSI) supports this bearish outlook, indicating a preference for downside movements with RSI levels below the midpoint.

Key Resistance Levels

50-day Moving Average

200-day Moving Average

Flag Resistance at 1.2308

Key Support Levels

Flag Support at 1.2200

1.2100

1.2000

1.1804

Retail Trader Sentiment (GBP/USD)

Retail trader data from IG shows that 69% of traders currently hold long positions on GBP/USD, indicating a bullish sentiment among retail traders as of the latest data available.

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