15 Dec 2015
GBP/USD struggles despite upbeat UK CPI
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).
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).