GBP/USD pulled back as traders reacted to UK inflation reports

GBP/USD Pulls Back As Traders React To Inflation Reports

GBP/USD is moving lower as traders focus on inflation data from the UK. Inflation Rate increased from 2.5% in December to 3% in January, compared to analyst forecast of 2.8%. Core Inflation Rate grew from 3.2% to 3.7%, in line with analyst expectations.

If GBP/USD declines below the 1.2550 level, it will move towards the support at 1.2485 – 1.2500. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.