GBP/USD regains 1.2700 and above on UK inflation

The British Pound met a bout of buying pressure in the wake of the release of UK’s inflation figures today, lifting GBP/USD to fresh daily highs above the 1.2700 handle.

GBP/USD bid after UK CPI

Cable has returned to the positive territory after UK inflation figures gauged by the CPI rose more than expected at an annualized 2.9% in May, up from April’s 2.7%. On a monthly basis, prices rose 0.3% vs. 0.2% forecasted.

Further data saw Core prices rising above expectations at 2.6% over the last twelve months, up from 2.4% previous.

The pair has thus extended the bounce off recent lows near 1.2640 helped by auspicious CPI results and the renewed softer tone around the greenback.

GBP/USD levels to consider

As of writing the pair is up 0.39% at 1.2708 facing the next up barrier at 1.2771 (high Jun.12) followed by 1.2783 (55-day sma) and then 1.2888 (20-day sma). On the downside, a breach of 1.2632 (low Jun.9) would open the door to 1.2622 (100-day sma) and finally 1.2571 (200-day sma).