After published yesterday data on the UK inflation the pound dropped 100 points. PPI Input fell 2.3% vs. expectations for -1.2%. Consumer Price Index - Core (y/y) grew 2% vs. estimates for 2.3%. Retail Price Index was 2.9% vs. forecast for 3.1%.
Today at 12:30 GMT+4 data on UK Retail Sales in April is published. It is forecast to be flat vs. -0.7% in March. Data in Public Sector Net Borrowing is expected to be 7.6 billion pounds vs. 16.7 billion in March. At the same time (12:30 GMT+4) Bank of England meeting minutes are published. At 14:00 GMT+4 data on factory orders in May is issued, forecast -18 vs. -25 in April. At 15:00 GMT+4 Deputy Governor Charles Bean speaks.
If Bank of England meeting minutes do not show any shifts in the number of voting members (0-0-9), then the pound may strengthen amid positive of the macroeconomic statistics.
Technically, after the price has overcome the yesterday's high, 1.5112, the price may drop to 1.5075 and then to 1.5055, support of Fibonacci extension on the H4. If the positive scenario is developing after the testing level 1.5195 is overcome the price may reach the resistance of Fibonacci extension in the area 1.5248, where it meets the Kruzenshtern line (blue sliding). If the price consolidates above the level, the testing of area of the extension to 1.5320 (the high of May 16) is possible.
