GBP/USD consolidates below 1.22. The Pound may struggle to benefit from Dollar weakness after US inflation data, according to economists at Scotiabank. 

More strike action announced

“More strike action was announced today, adding to ongoing industrial action in the health and transport sectors. Meanwhile, easing energy prices have pushed peak BoE pricing to 4.41%, down from a recent high above 4.75%. These factors may slow GBP gains versus the softer USD in the event of more Dollar weakness after US inflation data.”

“Spot looks well-supported near 1.21 on the short-term charts but momentum is weak and we think Cable will need to trade either above 1.2210 or below 1.21 to establish a stronger sense of short-term direction.”

“Longer-term price signals tilt risks towards a topside move.”

See – US CPI Preview: Forecasts from 10 major banks, price pressures to ease further