British CPI (Consumer Price Index), which is released each monthly, is an inflation index which measures the change in the price of goods and services charged to consumers. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 9:30 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators. An unexpected reading can quickly affect the direction of GBP/USD. CPI continues to drop, and made news headlines when the January release dipped below the 2.0% level, the first time that has occurred in over four years. The markets are expecting the downward trend to continue, with the February estimate standing at 1.7%. Sentiments and levels GBP/USD has hit a serious tailspin, and much will depend on British retail sales and CPI numbers this week. The taper train continues to chug along in the US and this has helped the dollar. US employment numbers have generally been solid and market sentiment with regard to the US economy remains positive. So, the overall sentiment is neutral on GBP/USD towards this release. Technical levels, from top to bottom: 1.6705, 1.66, 1.6475, 1.6343, 1.6247, and 1.6163. 5 Scenarios Within expectations: 1.5% to 1.9%. In this scenario, GBP/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: 2.0% to 2.3%: A stronger reading than predicted could push the pair above one resistance line. Well above expectations: Above 2.3%: An unexpectedly sharp rise in inflation could push GBP/USD upwards, with a second line of resistance at risk. Below expectations: 1.1% to 1.4%: A lower than expected reading could pull the pair downwards, with one support level at risk. Well below expectations: Below 1.1%: A very poor reading could result in the pair breaking a second support level. For more on the pound, see the GBP/USD forecast. To follow this event live: [do action=”calendar-event” eventid=”3ac4e096-06c8-4981-b973-622269563b1f”/] Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next Chinese manufacturing falls again, while markets are rising in Guest 8 years British CPI (Consumer Price Index), which is released each monthly, is an inflation index which measures the change in the price of goods and services charged to consumers. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 9:30 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators. An unexpected reading can quickly affect the direction of GBP/USD. CPI continues to drop, and made news headlines when the January release dipped below the 2.0% level, the first… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.