Ella 
GBP/USD was sold off above 1.2950 and resumed its downside.
The drop in UK inflation has provided some relief to Bank of England policymakers.
Britain’s finance minister is confident of winning the battle against high inflation.
GBP/USD has resumed its downside after encountering key resistance above 1.2950. The GBP/USD pair has shifted into a bearish trajectory as investors expect the Bank of England (BOE) not to raise interest rates aggressively now as inflation has responded favorably to lower prices for food that producers are offering at the factory gate.
However, with UK inflation now significantly higher than expected, the spell of policy tightening will continue. The Bank of England will announce its rate decision in August, with a 25 basis point hike taking the policy rate to 5.25%.
