GBP/USD faces barrier on UK political crisis

The GBP/USD pair has encountered selling pressure after attempting to sustain above the crucial level of 1.1900 which is a steep fall after surrendering the weekly support at 1.1876 and printed fresh weekly support at 1.1807.

On the UK front, ongoing political crisis after the announcement of resignation by current PM Boris Johnson has spooked the sentiment of the market participants. Investors will focus on the UK economic data. The Gross Domestic Product is seen at 0% vs. -0.3% printed earlier. While the annual Manufacturing Production may slip to 0.3% from the former release of 0.5%.

Investors are expecting that the US CPI will rise to 8.8% from the previous reading of 8.6%. The core CPI will blunder to 5.7% from the prior print of 6%. Products in core CPI such as durable goods, automobiles, and other necessary goods are experiencing a cool-off in their heated price rise.

This indicates that the policy tightening measures decided by the Fed in the past three monetary policy meetings, have started reflecting their impact now.