The GBPUSD is trading on the low side, testing close to the 1.3400 level after continuing to slump in the Asia session. Meanwhile, what can we expect from from today is UK CPI figures? Gain insight into today’s 23 May GBPUSD Fundamental Outlook.
23 May, GKFX – Wednesday brings a smattering of UK data, all dropping at 08:30 GMT, but the headliner for today is UK CPI figures. Economic growth has been a cruel mistress to the UK lately, and the Bank of England (BoE) was recently forced out of a widely-anticipated rate hike in May. Slumping economic data for the UK extended far worse than the hawkish BoE was ready for, and the Sterling has been punished heavily in the FX markets following the BoE’s dovish turn.
As noted by FXStreet’s Yohay Elam,
“The fall of annual inflation to 2.5% in March was one of the events that weighed heavily on the Pound as it lowers the chance of a rate hike. A repeat of the same level is expected for April and any deviation is likely to shake the pair.”
23 May GBPUSD Fundamental Outlook
As noted by FXStreet Chief Analyst Valeria Bednarik,
“technically, the 4 hours chart shows that a bearish 20 SMA keeps containing advances, now at around 1.3450, while technical indicators remain within bearish territory, the RSI lacking directional strength at 42 and the Momentum advancing modestly, all of which maintains the risk leaned to the downside.”
Support levels: 1.3390 1.3355 1.3320
Resistance levels: 1.3450 1.3490 1.3520
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