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)