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GBP/USD extends below 1h 200-SMA, UK CPI eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The GBP/USD pair failed to surpass the daily pivot ahead of 1.52 handle and dropped sharply in the late-Asian trades, now testing session lows near 1.5175 region.

    GBP/USD trades below 1h 200-SMA at 1.5184

    The GBP/USD pair trades -0.19% lower at 1.5175, heading towards 10-DMA support placed at 1.5161. The major came under renewed selling pressure after the greenback continues to climb higher against its major competitors amid growing belief in markets that a Dec Fed rate hike is a done deal now.

    Moreover, GBP/USD fails to benefit from the expectations of improving price pressures in the UK economy, with the headline CPI figure likely to tick higher to 0.2% in October, while the y/y change is projected to come out at 0.0%. While recovery in the risk sentiment following Monday’s Paris attacks-led risk-off trades, also did little to lift sentiment around the GBP.

    Meanwhile, markets keep an eye on the UK CPI and PPI figures due for release later today. While the US inflation data is likely to steal the limelight in today’s trading.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5200/04 (round number/ daily pivot), above which 1.5256 (20-DMA) would be tested. On the flip side, support is seen at 1.5161 (10-DMA) below which it could extend losses to 1.5112 (Nov 11 Low).
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