FX.co ★ Technical analysis of GBP/USD for April 16, 2014

British inflation fell to its lowest in over four years in March, easing pressure on living standards and raising the prospect that prices may now be rising less than wages for the first time in years. Tuesday's data showed that consumer price inflation dropped to 1.6 percent in March from February's 1.7 percent - the lowest level since October 2009, according to the Office for National Statistics.

Wage numbers are due today, they are forecast to show average earnings growth picking up to 1.8 percent from 1.4 percent - which if true, would be the first time that wages have outpaced inflation since April 2010. British wages typically rose by around 4-5 percent a year before the financial crisis, but since mid-2008 have mostly risen by less than inflation.

The pair has been in a down trend from 1.6820 levels. The pair is taking support at 1.67 levels and facing resistance at 1.6750. Currently, it is trading between 1.67-1.6750 levels. Break out either side will give a room to further levels. If the pair breaks the upper band at 1.6750, it will fly up to 1.6787 and 1.6820. On the down side the pair has support at 1.67, 1.666 and 1.6640. The level at 1.6640 is very crucial for bulls, if it breaks, it will breaks 1.6570 and 1.6550.