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UK CPI - Lowest in over 4 Years; GBP/USD Shrugs off Data and Looks Ready for Bullish Continuation

As expected by most economists, UK CPI came in at 1.6% per year in March, down from the 1.7% in the previous month. This is the weakest reading in over 4 years as you can see from the chart below.

(uk cpi. source:

Until inflation can pick up again, the BoE will be pressured to continue its loose monetary policy. It is expected to raise rates in 2015, but a prolonged period of low inflation can delay this projection.
The GBP/USD shows a dip immediately following the inflation report. However, being that this is nothing surprising, the market did not extend GBP-weakness. Instead, it looks like it is reviving the prevailing trend, which is bullish. 

If GBP/USD can break above 1.6745, it would be clearly above a falling channel resistance seen in the 1H chart. It would also break above this week's high, and suggest a bullish continuation to at least challenge last week's high and a key resistance at 1.6820.