Yesterday, we didn’t receive any important news, as expected, so the pair GBP/USD showed a consolidation
Today, we get enough important economic data, and their results on the back of expectations of the Fed's decision will determine the future direction of the pair GBP/USD.
The first part of the important news is the news from the UK. The CPI is expected to grow by 0.4% vs. the previous 0.3%. The core CPI is expected to growth by 1.3% against the previous 1.2%. Nevertheless, despite the optimistic predictions, the market may respond poorly to this data.
The second part is the data from the United States. In May, the retail sales are projected to grow by 0.3% against the previous 1.3%. The core retail sales: 0.4% after 0.8% in April. The import price index is expected to grow by 0.7% vs. 0.3% last month. All these indicators directly affect the GDP and may cause the revision of the forecast for the 2nd quarter, which stands at 2.5% now.
Today the pair GBP/USD may fall even to the area of 1.4090.
How to trade
The short-term downward movement is possible in the range 1.4175 - 1.4120. The short-term upward movement is possible in the range of 1.4255 - 1.4312. We buy put options from the current level.
Expiry time: 20:00 GMT