UK Inflation Slides to 2.5%, GBP/USD Remains Solid

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The Consumer Price Index in the UK is at an annual level of 2.5%, down from 2.6% last month and within expectations. Other inflation indicators came out a bit below expectations.

GBP/USD remains stable at around 1.6240 following the publication and is even ticking a bit higher.

Core CPI is at an annual pace of 2.1%. The Retail Price Index fell from 3.2% to 2.9%, below expectations of 3.1%. The House Price Index dropped from 2.3% to 2%, also under predictions of 2.2%.

These figures are a bit weak, but probably not enough to move the central bank to action anytime soon. GBP/USD is still enjoying the big gains following the announcement of QE3 last week.

Significant resistance appears at the round number of 1.63. This proved to be a very tough level in the past. Very serious support is at 1.60.

For more on the pound, see the GBPUSD forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.