GBP/USD & UK CPI: Will we see a breakout of the triangle pattern?
Today at 08:30 GMT will be published the United Kingdom’s Core Price Index for September (yearly basis), which currently has a 0.6 percent and market’s analysts are expecting to see an increase from 0.6% to 0.9%. During two months in a row, CPI has been showing improvement on its data and September’s release may not be an exemption.
The technical overview for GBP/USD at H1 chart is showing a bearish triangle pattern which helps to block further declines in the Sterling below the support level of 1.2143. With a weaker-than-expected reading of CPI, one may expect a breakout lower around that area and next target would be the 1.2022 level. However, if the Cable does a rebound a breaks the 1.2261 resistance level, it can reach the 200 SMA at H1 chart.