GBP/USD Slides Further Below 1.4500 Handle on upbeat US CPI Print
The GBP/USD pair extended its reversal from day's peak of 1.4524 to 1.4455 on slightly upbeat US CPI and mixed housing market data.
According to the data release just a short while ago, US CPI for April came-in at 0.4%, above forecast estimates of 0.3% while core CPI (excluding food and energy) met forecasts of 0.2%. Meanwhile data from the US housing market was mixed with housing starts beats estimates while building permits fell short of expectations.
Early on Tuesday, the GBP/USD pair's momentum beyond 1.4500, led by the latest poll results showing growing support for the UK to remain with the EU, stalled after the release of softer-than-expected UK inflation report. The Office for National Statistics (ONS) reported that the UK consumer prices in April rose 0.3% on y-o-y basis, which was lower than consensus estimates of matching March reading of 0.5%.
Steven Knight, Research Analyst Blackwell Global Investments Limited notes, “our bias for the Cable remains fairly neutral given that the 12 and 30 EMA’s have largely moderated; however, the RSI Oscillator has recently turned the corner and continues to tick higher. In addition, despite yesterday’s pullback from a zone of support, the pair is likely awaiting a strong trend to develop. Subsequently, price action will need to break through either resistance at 1.4529 or support at 1.4089 to cement a trend direction hence our currently neutral bias.”