Today, traders are focused on UK's CPI data. The UK's inflation stood at 0.5% in December 2014 which is well below the target of 2%. The print in November was 1.2%. The main reason for this was the steepest fall in wholesale energy prices during the second half of 2014. In case, if a decline in energy prices persist, the inflation could temporarily turn negative as it is foreseen in the BoE inflation report. Falling energy prices helping the BoE to keep interest rates at the record low of 0.5%.

The prices gave an inverse head & shoulder breakout on the hourly chart. The prices are forming a higher lows and higher highs formation on the h4-chart. They formed a minor support base between 1.5210 and 1.5195. If the pair breaks and closes below 1.5195, they can extend the correction towards 1.5140, 1.5080, and 1.4990. On the monthly chart, the previous supports exist between 1.4830 and 1.4800. The intraday resistance is placed at 1.5400. Falling yesterday, the cable managed to hold at the 50Dsma and closed above it. The intraday support exists between 1.5330 and 1.5300. We recommend safe buying above 1.5400 with the targets at 1.5460, 1.55, and 1.5540. On the down side, we recommend selling below 1.5300 with the targets at 1.5270 and 1.5200.