Sterling came under pressure this week following news that inflation posted flat year-over-year in February, the worst result on record. Driven by sliding oil prices, the Consumer Price Index (CPI) in the UK has flat lined as food and motor costs contracted. The CPI number helped reinforce the idea that interest rates in the Britain will remain low and has put the British Pound on the defensive.

GBPUSD had been flirting with 1.5000 this week, but as trading winds down the pair has been turned back. 1.5000 is a key psychological level and so long as rates remain below it, the overall outlook for the pair will point lower.

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