Consumer prices in the United Kingdom fell to a 3-year low in October. Data from ONS showed that inflation rose just 1.5% on an annual basis.
This was slower than the estimates of a 1.6% estimate and down from 1.7% in September. At the current rate, UK inflation is at its lowest level in three years.
GBP/USD Muted to Inflation Report
The currency pair did not budge from the previous levels near 1.2865. The consolidation just below this resistance area could signal a breakout in the near term.
The bias is mixed for the moment, but there is scope for prices to break the resistance level. This will put the GBPUSD back into the range within 1.2960 and 1.2865. To the downside, price needs to decline strongly for any scope of a test of support at 1.2582.
