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GBP/USD hits new session highs above 1.43 ahead of UK CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The GBP/USD pair stages solid comeback from more than five-year base and now gun through the 1.43 barrier on its way to fresh session high, with markets now awaiting the UK CPI report for fresh incentives.

    GBP/USD regains 1.4300

    The GBP/USD pair trades 0.44% higher at 1.4306, hovering close to fresh session highs printed at 1.4311 last minutes. The cable tested May 2010 low following China’s GDP data and bounced-off from there, staging a solid recovery above 1.43 handle in Europe.

    The GBP bulls found support from the risk-on rally in the Asian and European equities, while expectations of a slight uptick in the UK price pressures also lifted the sentiment around the cable. The UK CPI figures are projected to tick higher from 0.1% to 0.2% m/m. The core gauge should remain at 1.2% y/y.

    Meanwhile, the major tracks the renewed optimism in the equities, with the main focus now on the UK inflation report and BOE Governor Carney’s speech due later today.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4350 (1h 100-SMA/ psychological levels), above which 1.4393/1.4400 (10-DMA/ round number) would be tested. On the flip side, support is seen at 1.4264/64 (1h 10 & 20-SMA) below which it could extend losses to towards 1.4233/30 (daily low & May 2010 low).
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