GBP/USD stays depressed around 1.3990 after dropping the most since April-end, not to forget testing early May levels, during the initial Asian session trading on Thursday. The cable pair’s Fed-led slump broke the three-month-old horizontal support around 1.4010-4000. The bearish sentiment also gains support from the downbeat MACD signals.
The British pound rose on Wednesday after the relatively strong UK consumer price index (CPI) data. According to the Office of National Statistics (ONS), the country’s consumer inflation rose from 1.5% in April to 2.1% in May on a year-on-year basis. Similarly, the core CPI that excludes the volatile food and energy products, rose from 1.3% to 2.0%. This increase was mostly because of higher clothing and gasoline prices as the country continued to reopen. The data came a day after the ONS published a relatively strong unemployment rate and a few days ahead of the Bank of England decision.
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