Softer UK inflation easing the rate hike expectationGBP/USDOANDA:GBPUSDWiseLeoTradingThe UK Apr CPI softened beyond expectations to 2.8% YoY (prev. 3.3%, cons. 3.0%), driven by the housing and household services sector due to the high base effect from last year’s tax hike, alongside recent downward pressure within the housing segment. Meanwhile, the energy price cap eased inflationary pressures in line with market expectations. However, this month's decline might represent a one-off occurrence, and price pressures may resume in the coming months as persistent Middle East tensions threaten to block the Strait of Hormuz. Even if parties reach a deal, risk of clause violations remains, which may quickly close the waterway again. Consequently, upward price pressures may persist, and the pass-through effect from elevated energy prices may exert a broad-based impact in the coming months if the conflict continues. Technically, the pound-dollar rose to briefly test 1.3460 before retracing, and the pair now trades between both EMAs, signaling a consolidation phase between 1.3380 - 1.3460. A breach above 1.3460 may trigger a rally toward the next resistance at 1.3550. Conversely, holding below 1.3380 may cause the pound-dollar to seek the next support at 1.3300. By Van Ha Trinh - Financial Market Strategist at Exness