GBP/USD drops on weaker than expected UK CPI data
The GBP/USD treaded water to touch the 1.4396 low after a lower than expected UK inflation report. The GBP/USD hovered lower on a stronger dollar after strong US CPI data.
The GBP/USD remains under pressure ahead of the UK unemployment report and ahead of “Brexit” votes. Cutting 1.4400 will provide a lower leg toward 1.4365 and 1.4330 respectively.
However, strong UK wage growth may spark a bullish reaction in GBP/USD, as it plays a big role in the Bank of England (BOE) normalizing monetary policy. Breaking 1.4480 will push the GBP/USD higher towards 1.4500 and 1.4525.
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