UK CPI rises in March but not by as much as expected- GBP/USD drops back

The important UK CPI and RPI inflation reports have just been released. As noted a little earlier, the markets were expecting both prices to bounce back last month. However, the core annualised CPI rate was expected to fall though, but not by very much and still way above its 2% target. The call on that was for a drop to 3.6% from 3.7%. It has just emerged at 3.5%. The monthly gains are a little shy of estimates too, but still above the prior readings on both CPI and RPI. Ahead of this data the GBP/USD was edging a fraction higher. The reaction after it has seen the Pound fall back and drop below 1.2920 just now