GBP/USD: Recovers to 1.4500 ahead of US CPI

GBP/USD: Recovers to 1.4500 ahead of US CPI

17 May 2016, 13:57
Roberto Jacobs
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GBP/USD: Recovers to 1.4500 ahead of US CPI

Following the release of the UK inflation report, the GBP/USD pair tried a couple of attempts to regain 1.45 handle, but in vain, as disappointing CPI data continue to cap the upside.

GBP/USD hovers below 20-DMA at 1.4493

Currently, GBP/USD trades +0.60% higher at 1.4477, having reversed a spike to 1.4518 shortly after the UK data release. The cable found fresh bids near 1.4450 levels after dismal UK CPI data-led slide and regained significant strength over the last hour, driving the spot back towards 1.45 handle.

However, the recovery attempts look fragile as markets remain on the back foot heading towards the American session, with a host of US economic data on the cards, particularly the US CPI data, which is expected to have significant impact on the US dollar.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4524 (daily high), above which 1.4550 (daily R2/ psychological levels) would be tested. On the flip side, support is seen at 1.4436/24 (1h 200-SMA/ 10-DMA) below that at 1.4310/00 (Apr 22 Low & round figure).


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