15 Apr 2014
GBP/USD got under PPI stress, but CPI came to rescue
FXStreet (Moscow) - GBP/USD broke below 1.6680 support area and reached 1.6661 session low, but in a second it came back above 1.67 helped by CPI readings.
UK CPI confirmed the direction
The pound was left without catalysts yesterday, but today everything will change, as CPI data was released. Since the BOE is still focused on two key indicators - inflation and labor readings - the report is of key importance. The sliding energy prices lowered the inflationary pressure, and it will be another argument for the BOE not to speed up the transition from easing to tightening. Thus, nothing surprising that the pair moved to 1.6661 low as soon as it got weaker than expected PPI, but the released in a second CPI data meeting the forecasts returned the pair back to 1.6710 area again.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6723, with support below at 1.6701, 1.6674, 1.6652 with resistance above at 1.6750, 1.6772, and 1.6799. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6687, and the daily 20EMA bullish at 1.6662. Hourly RSI is bearish at 38.
UK CPI confirmed the direction
The pound was left without catalysts yesterday, but today everything will change, as CPI data was released. Since the BOE is still focused on two key indicators - inflation and labor readings - the report is of key importance. The sliding energy prices lowered the inflationary pressure, and it will be another argument for the BOE not to speed up the transition from easing to tightening. Thus, nothing surprising that the pair moved to 1.6661 low as soon as it got weaker than expected PPI, but the released in a second CPI data meeting the forecasts returned the pair back to 1.6710 area again.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6723, with support below at 1.6701, 1.6674, 1.6652 with resistance above at 1.6750, 1.6772, and 1.6799. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6687, and the daily 20EMA bullish at 1.6662. Hourly RSI is bearish at 38.