GBP/USD: Post-CPI rally stalls near 1.5220

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP bulls fought back control in the mid-European session, with GBP/USD swinging back higher above 1.52 handle, as markets cheer above estimates UK core inflation figures.

    GBP/USD clings to 1.52 barrier

    The GBP/USD pair trades modestly flat at 1.5204, easing-off fresh session highs reached at 1.5217 in last hours. The cable erased losses and jumped on the bids, finally surpassing the hourly 100-DMA hurdle, as the UK CPI data boosted the sentiment around sterling.

    The annualized UK CPI continued to remain at a record low rate of -0.1% for the second straight session. Meanwhile m/m CPI rose above zero by 0.1% and the core CPI, stripped of energy and food prices, rose above expectations to 1.1%, its highest level in three months.

    Moreover, broad based US dollar retreat ahead of the US CPI data also provided the much-needed impetus to the GBP/USD pair. The USD index now turns lower to 99.60, up 0.13% on the day.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.5228 (Nov 16 High), above which 1.5257/66 (20-DMA/ Nov 13 High) would be tested. On the flip side, support is seen at 1.5179 (1h 200-SMA) below which it could extend losses to 1.5134 (daily S3).
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