GBP/USD Holds Steady as UK Inflation Stays at 3% Despite Rising Housing Costs

GBP/USD remained largely unchanged following the release of UK February inflation data, which showed the annual CPI rate holding steady at 3.0%, matching January's figure and broadly in line with market expectations. Beneath the stable headline number, rising retail and housing costs signaled persistent underlying price pressures that could complicate the Bank of England's policy outlook. The BoE, which has maintained a cautious stance on rate cuts, may find the sticky inflation data supportive of keeping rates elevated for longer. For traders, the lack of a surprise in the headline figure explains the muted reaction in GBP/USD, with the pair consolidating near current levels. Key technical support remains at recent session lows, while resistance is defined by the upper end of the recent trading range. Near-term direction will likely depend on incoming US data and broader risk sentiment. Traders should monitor upcoming UK retail sales and PMI releases for further clues on the trajectory of domestic inflation and potential BoE action.