- UK inflation is expected to fall below 2% this week, driven by a decline in services inflation.
- GBP/USD is nearing a critical support level at 1.3000, with potential resistance at 1.3250
UK inflation is forecast to dip below the key 2.0% threshold this week, according to economists monitoring the country’s inflation.
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Morgan Stanley analysts anticipate a larger-than-expected decline, driven by falling airfares and hotel prices—key components of services inflation. This metric is under close scrutiny by the Bank of England ahead of its next rate decision on November 7.
GBP/USD is approaching a potential critical support level at the September low of 1.3000, a price point that could test the series of lower highs established since April. This area also served as resistance back in July.
On the upside, the next resistance is eyed at 1.3250—a level where we saw the pair drop off a cliff at the beginning of October and faced resistance in august.
