GBP/USD plummets to session lows on UK CPI, closer to 1.4200

• Cable tumbles to fresh lows in the 1.4220 region.
• UK CPI rose 2.5% on a yearly basis, missing estimates.
• Later in the session, Fed’s Beige Book and Fedspeak on tap.

The selling sentiment is now picking up extra steam around the Sterling and dragging GBP/USD to test fresh lows in the 1.4220 region.

GBP/USD weaker on downbeat CPI

Cable faded further the recent spike to the 1.4370 region, or fresh 2018 tops recorded on Tuesday, after UK inflation figures rose less than expected during March.

In fact, UK’s consumer prices increased at an annualized 2.5% during last month, coming in below prior surveys. On a monthly basis, prices rose 0.1%, less than the initially forecasted 0.3% gain.

In the meantime, occasional GBP weakness appears to have short legs, as it remains well underpinned by expectations of a rate hike by the BoE at its meeting next month, alleviated Brexit concerns and some healthy results in the UK docket as of late.

GBP/USD levels to consider

As of writing, the pair is losing 0.54% at 1.4212 and a break below 1.4189 (10-day sma) would aim for 1.4145 (low Apr.12) and then 1.4140 (21-day sma). On the upside, the next hurdle emerges at 1.4377 (2018 high Apr.17) seconded by 1.4516 (high Mar.18 2016) and finally 1.4568 (monthly low Apr.2015).