18 Feb 2014
GBP/USD softer on UK CPI
FXStreet (Edinburgh) - The pound intensifies its intraday decline on Tuesday, taking GBP/USD to visit fresh lows in the area of 1.6660 after UK inflation figures.
GBP/USD weaker on data
UK’s consumer prices advanced at an annual pace of 1.9% during January, coming in short of expectations and December’s print at 2.0%. Core prices just followed suit, advancing 1.6% YoY vs. 1.9% expected and 1.7% previous. The pair quickly retreated to 3-day lows in the proximity of 1.6660 in the wake of the release, accelerating the correction lower. There are no more releases in the UK docket today, ahead of the BoE minutes and the employment report due tomorrow. In the technical space, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “upmove is a little over stretched and the daily RSI has not confirmed the recent 1.6822 high and as a consequence the market is likely to correct lower near term or at least consolidate some of its recent gains”.
GBP/USD support/resistance levels
As of writing the pair is retreating 0.0.17% at 1.6676 facing the next support at 1.6644 (low Feb.14) ahead of 1.6594 (low Feb.13). On the upside, a surpass of 1.6823 (2014 high Feb.17) would target 1.6845 (high Nov.18 2009) en route to 1.6879 (high Nov.16 2009).
GBP/USD weaker on data
UK’s consumer prices advanced at an annual pace of 1.9% during January, coming in short of expectations and December’s print at 2.0%. Core prices just followed suit, advancing 1.6% YoY vs. 1.9% expected and 1.7% previous. The pair quickly retreated to 3-day lows in the proximity of 1.6660 in the wake of the release, accelerating the correction lower. There are no more releases in the UK docket today, ahead of the BoE minutes and the employment report due tomorrow. In the technical space, Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair’s “upmove is a little over stretched and the daily RSI has not confirmed the recent 1.6822 high and as a consequence the market is likely to correct lower near term or at least consolidate some of its recent gains”.
GBP/USD support/resistance levels
As of writing the pair is retreating 0.0.17% at 1.6676 facing the next support at 1.6644 (low Feb.14) ahead of 1.6594 (low Feb.13). On the upside, a surpass of 1.6823 (2014 high Feb.17) would target 1.6845 (high Nov.18 2009) en route to 1.6879 (high Nov.16 2009).