The Great Britain Pound fell against the green back after the sluggish U.K. inflation data sent the pound softening against the dollar.
The U.K. Office for National Statistics reported earlier that the year-on-year consumer price index slowed to 1.2% last month from 1.5% in August. Analysts had expected U.K. CPI to fall to 1.4% in September. Month-over-month, consumer price inflation came in flat in September after rising 0.4% in August.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, rose at a rate of 1.5% last month, down from 1.9% in August. Analysts had expected core prices to rise 1.8% in September.
Intra day bias remains on the downside with 21 and 55 EMA’s crossing downward. Also we have the SSRC, MACD and RSI oscillator signalling more bearish momentum. However the market seems to be oversold so another way to trade with a small stops in the scenario is to sell the rips. This means waiting for a decent retracement for a retest of the 21 EMA or selling on a resistance. Further decline to 1.58049 (weekly support 2) is expected.
Tommorrow investors would be taking a close look at the GBP Claimount Count Change, Average Earning Index and Unemployment Rate. Also we will be having the USD Retail Sales scheduled to be released tomorrow afternoon.