25 Mar 2014
GBP/USD dips further on UK CPI
FXStreet (Edinburgh) - The GBP/USD advanced through 1.6500 the figure soon after UK inflation figures surprised investors to the upside in February, although the spike was short-lived.
GBP/USD regains 1.6500
Higher than expected UK consumer prices in February briefly pushed spot beyond the 1.6500 mark: headline CPI rose at an annual pace of 1.7%, matching estimates albeit a tad lower than January’s 1.9% rise. Core prices also rose 1.7%, leaving behind estimates and previous reading ay 1.6%. In another tone, Mortgage Approvals gauged by BBA came in at 47.6K. missing the median at 50k and lower from the previous month. “Only back above 1.6685/95 would the outlook turn more positive, in our view. However, for now initial rallies this week look set to be sold into and the risk remains lower, with potential for 1.62/ 1.63 and maybe even 1.60’s as levels to come over the following weeks”, commented Paul Robson, Senior FX Strategist at RBS.
GBP/USDD levels to watch
At the moment the pair is down 0.02% at 1.6494 with the next support at 1.6460 (low Mar.24) followed by 1.6453 (38.2% of 1.5854-1.6823) and then 1.6425 (low Feb.12). On the flip side, a break above 1.6536 (high Mar.24) would open the door to 1.6550 (55-d
GBP/USD regains 1.6500
Higher than expected UK consumer prices in February briefly pushed spot beyond the 1.6500 mark: headline CPI rose at an annual pace of 1.7%, matching estimates albeit a tad lower than January’s 1.9% rise. Core prices also rose 1.7%, leaving behind estimates and previous reading ay 1.6%. In another tone, Mortgage Approvals gauged by BBA came in at 47.6K. missing the median at 50k and lower from the previous month. “Only back above 1.6685/95 would the outlook turn more positive, in our view. However, for now initial rallies this week look set to be sold into and the risk remains lower, with potential for 1.62/ 1.63 and maybe even 1.60’s as levels to come over the following weeks”, commented Paul Robson, Senior FX Strategist at RBS.
GBP/USDD levels to watch
At the moment the pair is down 0.02% at 1.6494 with the next support at 1.6460 (low Mar.24) followed by 1.6453 (38.2% of 1.5854-1.6823) and then 1.6425 (low Feb.12). On the flip side, a break above 1.6536 (high Mar.24) would open the door to 1.6550 (55-d