GBP/USD Retraces Gains, Dips Back Below 1.4300
GBP/USD was
rejected from the 1.4345 zone and retraced most of its UK CPI-inspired
gains over the last hours, as the greenback strengthened versus its
European peers.
GBP/USD failed to hold above the 1.43 level and
slid toward the 1.4250 area where the 20-hour SMA offered support. At
time of writing, the pair was trading at 1.4265, still 0.21% above its
opening price.
The pound was supported by better-than-expected UK
CPI data. On yearly basis, CPI rose 0.5% in March, its largest increase
since November 2014 and above expectations of a 0.4% gain. Meanwhile,
core CPI rose 1.5%, the most since August 2014, and also above estimates
of 1.3%.
GBP/USD technical levels
In
terms of technical levels, immediate resistances could be found at
1.4370 (Apr 1 high), 1.4458 (Mar 30 high) and 1.4495 (100-day SMA). On
the flip side, supports are seen at 1.4225 (Apr 12 low), 1.4105/00 (Apr
11 low/psychological level), 1.4040 (Apr 8 low) and 1.4004 (Apr 4 low).
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