Sterling pares earlier gains as UK inflation is seen to stay below target
GBP/USD slips from 1.3060 to 1.3040 levels
The pound also slips to the day's lows against the euro with EUR/GBP rising to 0.8680 on the back of the report earlier. Meanwhile, cable is inching lower towards 1.3040 currently as the data misses on expectations.
However, as mentioned in the release, the bigger takeaway for me is that London house prices is seen slowing at its quickest pace since the global financial crisis. That owes much to Brexit but it certainly doesn't help the pound's case when Brexit is still nowhere near to being resolved at the moment.
The inflation report is not likely to offer anything new as CPI figures hold steady compared to February (still below the 2% target on annual headline inflation). Hence, the main focus for the pound will still remain on Brexit developments.
As for cable price action now, near-term bias is more bearish as price holds below the key hourly moving averages but there is near-term support around 1.3030-35 from last week's lows. However, the key support level for me remains the bottom side of the triangle pattern, which rests at 1.3005. That and bids around 1.3000 will be key support levels to watch out for in cable as we navigate through the sessions ahead.