The British pound is under pressure. Inflationary data on Great Britain

The British pound was under pressure after the inflation data in the UK turned out to be lower than the forecast.

• The consumer price index in December rose by 0.4%, while analysts had expected growth of 0.6%. On an annualized basis, the growth rate was 3.0%, which is lower than the previous value at 3.1%.
• The base retail price index rose by 0.8%, exceeding the previous value at the level of 0.1%. On an annualized basis, the growth rate was 2.5%, which is below the forecast of 2.7%.

Despite the fact that the inflation indicators were lower than the forecast, the inflation rate in the UK remains above the 2.0% level, and therefore the Bank of England may increase the interest rate when stabilizing the risks of Brexit.

Technical analysis: Despite some decline, the pair GBP/USD remains positive. The main support levels are 1.3730; 1,3680, which correspond to the Fibonacci levels of 23.6 and 38.2 on H1. The main resistance levels are 1.3820, 1.3840.

Fig. GBP/USD. The current price is $ 1.3770.

Alexander Sivtsov