The Great Britain pound (GBP) inched higher against the US dollar (USD) on Wednesday, increasing the price of the GBPUSD pair to more than 1.3900, ahead of the release of the yearly Consumer Price Index (CPI) news.
The National Statistics plans to release stats concerning the UK CPI on Wednesday (March 24, 2021). According to economists’ consensus, the CPI registered a reading of 0.6% in February this year, compared to the figure of 0.5% the month before data.
The stats for Britain’s CPI reflects the changes that occurred in the price of various products and services over time under consideration. The sampling of different products and services selected from various representative shopping baskets enable concerns to put forward the said data. The CPI is an important indicator of inflation to estimate the possible economic movement of the country. Because the rising inflation rate could make things worse for the country’s economy, affecting the purchasing power of consumers.
And it’s nice to see that in the figure below, several support levels will help the pair’s price to sustain around the given level.
In the short to medium term, given the price action of the GBP/USD pair over the past few days, selling it around the current level could be a fair trading decision.