GBP/USD Extends CPI-Driven Rally Towards 1.4350
The bid tone surrounding the GBP keeps growing bigger as we progress towards the mid-European trades, now pushing GBP/USD towards the mid-point of 1.43 handle.
GBP/USD sees a 60-pips rally post-UK CPI
The
GBP/USD pair advances 0.74% to fresh weekly highs of 1.4346, with the
bulls extending control on a break of 1.43 handle. The cable jolts
higher over the last hour as the bulls continue to cheer the better than
expected UK inflation figures.
On annualised basis, the UK CPI
reached the highest since November 2014 of 0.5% in March, above
expectations of a 0.4% increase, and above February’s 0.3%. Core gauge,
increased to 1.5%, the most since August 2014, and also above estimates.
The
renewed strength in the GBP/USD pair can be also attributed to a
rebound in the oil prices, which lifted the overall market sentiment and
underpinned the demand for risk currencies such as the GBP. Meanwhile,
the US oil is up +0.84%, while Brent rallies +1.12% so far this session.
Next
on tap remains the second-liner data from the US , the import prices
index due later in the NY session, while focus now remains on the
Chinese trade data as well as the US retail sales and PPI numbers due
tomorrow.
GBP/USD Levels to consider
The
pair has an immediate resistance at 1.4379/91 (Apr 1 high & daily
R2), above which 1.4445 (100-DMA) would be tested. On the flip side,
support is seen at 1.4249/30 (1h 20-SMA/ 50-DMA) below that at 1.4186/72
(10 & 5-DMA).
(Market News Provided by FXstreet)
