Global macro overview for 22/03/2017:

The U.K. Consumer Price Index rises to 2.3%, the highest level since 2013 and consumer prices rose 0.7% in February compared with consensus forecasts of a 0.5% gain. The underlying annual rate also increased to 2.0% from 1.6% previously and compared with expectations of a smaller advance to 1.8%. The biggest price pressure was noticed in food (0.3% increase), transport, housing and household services. In conclusion, after the clear increase in latest inflationary pressures, the global investors will tend to increase speculation that the Bank of England will move quicker than expected to an increase in interest rates. As we remember, at the last week BoE meeting, policymaker Forbes already called for an immediate increase in rates given inflation trends. So far the rest of the policymakers are more hesitant and uncertain, but this might change very fast given the recent inflation data.

Let's now take a look at the GBP/USD technical picture at the H4 timeframe. The market is trading around the 78%Fibo at the level of 1.2471, but the overbought market conditions might suggest that a corrective move towards the next technical support at the level of 1.2437 is next. Moreover, the correction might even extend towards the golden trend line support around the level of 1.2400.