GBP/USD nose-dives to 1.5250 on CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The sterling has surrendered its initial gains vs. the greenback on Tuesday, now quickly dragging GBP/USD to session lows in the mid-1.5200s.

    GBP/USD weaker on UK’s CPI

    The pair is coming down after hitting fresh tops in the vicinity of 1.5400 the figure propped up by market chatter in the M&A sector in early trade. However, the up move seems to have run out of steam, triggering a correction lower that was later exacerbated by inflation figures below expectations.

    In fact, UK’s consumer prices have contracted 0.1% on a year to September and 0.1% on a monthly basis, both prints missing previous estimates. Core prices also followed suit, rising 1.0% on a yearly basis vs. 1.1% anticipated.

    GBP/USD important levels

    As of writing the pair is losing 0.56% at 1.5264 and a breakdown of 1.5138 (up trend from ytd low) would expose 1.5107 (low Oct.1) and then 1.5089 (low May 5). On the other hand, the initial hurdle aligns at 1.5405 (55-day sma) ahead of 1.5443 (Fibo 38.2% of 1.5658-1.5107) and then 1.5493 (down trend from August tops).
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