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GBP/USD struggles despite upbeat UK CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 15, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair is having a tough time extending gains above 1.5160 even though the UK November CPI beat estimates and the core ticked higher as expected.

    No short lived gains

    Sterling did not even see short lived gains even though the month-on-month CPI figure stalled in November compared to the expected drop of 0.1%. The annualised CPI matched estimates of a 0.1% rise and so did the core CPI, which ticked higher to 1.2% as expected.

    However, the cable remained silent in the range of 1.5150-1.5160. Moreover, producer prices registered a much sharper drop and that could have overshadowed a slight improvement in the core CPI figure.

    GBP/USD Technical Levels

    The pair faces immediate resistance at 1.5185 (23.6% of July 2014-April 2015 plunge), ahead of the major hurdle at 1.5235 (50-DMA) – 1.5248 (50% of Apr-Jun rally). On the other hand, support is seen at 1.5113 (23.6% of 1.5819-1.4895), under which the pair could drop to 1.5027 (Nov 6 low).
    For more information, read our latest forex news.

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