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UK Inflation Softest Since 2009; GBP/USD Stays Put

UK consumer prices rose an annual 1.7% in February, a drop from the 1.9% in January. This was in line with expectations, and is the lowest since Oct. 2009. 

As you can see inflation rate has been sliding since Oct. 2011, when it was a whopping 5.2%. 

The Bank of England has a mandate to keep inflation around 2%, but as the you can see, consumer prices have been fluctuating over the years, with a higher inflationary bias. 


(GBP/USD 4H Chart)

The market did not show much reaction in the GBP/USD. The 4H chart shows cable continuing to consolidate above a rising trendline from Nov. 2013. 

A break above yesterday's (3/24) session high around 1.6535 might open up to a bullish attempt, which can challenge the falling channel pattern that has been developing throughout March.

A break below 1.6460, low on the week so far, will break below the recent consolidation as well as the key trendline coming up from the Nov. 2013 low.