Greetings dear friends, today the currency pair is trading around the level of 1.278 and has started a slight correction after facing selling pressure since yesterday.
The cautious sentiment in the market ahead of important events in both the UK and the US may provide some support for safe-haven assets like the US Dollar (USD). The US Consumer Price Index (CPI) for February is estimated to maintain stability at 3.1% compared to the same period last year, and the core CPI is expected to decrease from 3.9% to 3.7% in February.
A stronger-than-expected CPI report could further diminish hopes of a Fed interest rate cut in the near future. Conversely, this could boost the US Dollar and create resistance for the GBP/USD currency pair.