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UK Inflation Slows - GBP/USD Consolidating Around 1.70

Today, we got inflation data from the UK.

CPI y/y (May) : 1.5%
Forecast : 1.7%
Previous : 1.8%

PPI m/m (May) : 0.1%
Forecast : 0.0%
Previous : 0.3%

The most important one to look at is the annual consumer inflation rate, which is 1.5%. This is below the 2.0% target, and thus gives some room for the BoE to maintain its current monetary policy longer before a rate hike. 

The GBP/USD is consolidating around 1.70, and the inflation data initially pushed GBP/USD lower to 1.6938. This 1.6940 area appears to provide support, but traders in the US session are trying to test it again. A break below 1.6935 should open up the 1.6845 pivot. If price holds, and pushes above the 1.7010 high, GBP/USD should test the 1.7040, 2009-high.

(gbpusd 5h chart, 6/17)