16 Jul 2013
UK CPI next: impact on GBP/USD
FXstreet.com (Edinburgh) -A batch of UK data will kick in later with the release of the consumer prices for the month of June. Prior surveys expect the headline CPI to rise at an annual pace of 3.0% vs. 2.7% previous. The Core reading would follow suit, advancing 2.3% over the last twelve months, up from May’s 2.2%.
After printing fresh 2013 lows around 1.4815 last week, the pound initiated a bumpy correction higher to the current levels around 1.5130, albeit the bulk of the up-move came from some renewed USD weakness. The key levels to watch today will be 1.5143 (session highs) followed by 1.5173 (38.2% retracement of 1.5753-1.4814). On the downside, the initial support lies at session lows at 1.5091 followed by the 10-day moving average at 1.5065.
In the opinion of Valeria Bednarik, Currency Strategist at FXstreet.com, “only below 1.5050 the pair will be back on the bearish path towards 1.4980 while price stabilization above 1.5200 will expose 1.5310 price zone”.
After printing fresh 2013 lows around 1.4815 last week, the pound initiated a bumpy correction higher to the current levels around 1.5130, albeit the bulk of the up-move came from some renewed USD weakness. The key levels to watch today will be 1.5143 (session highs) followed by 1.5173 (38.2% retracement of 1.5753-1.4814). On the downside, the initial support lies at session lows at 1.5091 followed by the 10-day moving average at 1.5065.
In the opinion of Valeria Bednarik, Currency Strategist at FXstreet.com, “only below 1.5050 the pair will be back on the bearish path towards 1.4980 while price stabilization above 1.5200 will expose 1.5310 price zone”.