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18 Jun 2013
UK CPI next: Impact on GBP/USD
FXstreet.com (Edinburgh) - The inflation figures are due next in the British economy. Market consensus expects consumer prices to have expanded at an annual pace of 2.6% during May, up from April’s rise of 2.4%. Core prices would follow suit, rising 2.1% vs. 2.0% previous.
The sterling continues to hover around its 200-day moving average at 1.5700 on Tuesday, although trading on the back foot ahead of the upcoming releases. The critical levels to watch on the GBP/USD are located at 1.5723 (session highs so far) and then 1.5753 (Monday’s highs). On the downside, the next support level lies at 1.5663 (today’s bottom) and then the 10-day moving average at 1.5626.
“A recovery above 1.5660 on the other hand, will deny the possibility of a downside continuation and see pair aiming back higher towards the 1.5710/30 price zone”, comments Valeria Bednarik, Currency Analyst at FXstreet.com.
The sterling continues to hover around its 200-day moving average at 1.5700 on Tuesday, although trading on the back foot ahead of the upcoming releases. The critical levels to watch on the GBP/USD are located at 1.5723 (session highs so far) and then 1.5753 (Monday’s highs). On the downside, the next support level lies at 1.5663 (today’s bottom) and then the 10-day moving average at 1.5626.
“A recovery above 1.5660 on the other hand, will deny the possibility of a downside continuation and see pair aiming back higher towards the 1.5710/30 price zone”, comments Valeria Bednarik, Currency Analyst at FXstreet.com.