GBP/USD extending above 1.5400

FXStreet (Edinburgh) -The better tone in the riskier assets in helping GBP/USD to consolidate its break above the 1.5400 handle before the European open on Monday.

GBP/USD focus on inflation figures

Empty docket in the UK economy plus thin trade due to the President’s Day holiday in the US will leave markets to the mercy of the risk appetite trends. However, events coming from the key Eurogroup-Greece meeting will certainly add bouts of volatility in the pair, ahead of the release of the critical UK CPI tomorrow. Consensus expects consumer prices in the British economy to have extended its decline during January, as anticipated by Governor M.Carney in the Quarterly Inflation Report last week.

GBP/USD key levels

At the moment the pair is up 0.22% at 1.5437 with the next resistance at 1.5481 (23.6% of 1.7192-1.4952) and then 1.5500 (psychological level). On the other hand, the initial support lines up at 1.5381 (hourly low Feb.13) ahead of 1.5261 (40-d MA) and finally 1.5246 (10-d MA).

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