The first bunch of fundamental data from the UK is out, and is no good for Pound: before the data was even released, speculation of a weaker CPI put GBP/USD under selling pressure, down to 1.6170 from previous 1.6220. Inflation finally came out, down to 1.5% as expected, albeit PPI readings were generally weak, pushing the pair to a fresh low of 1.6160, now consolidating nearby. Such weak number diminishes chances of a sooner rate hike in the UK and investors run to price it in.
Technically, the pair breached the 23.6% retracement of its latest bearish run at 1.6190, now immediate resistance as latest recoveries found sellers around it according to the 1 hour chart. In the 4 hours one, indicators had gained bearish momentum, accelerating south below their midlines, supporting some further slides: a downward acceleration below 1.6160 should see the pair extending towards the 1.6110/20 price zone, while if this last gives up, this month low around 1.6050 comes next.
A recovery above 1.6190 on the other hand should take out some of the pressure and see the pair back to its comfort zone between 1.6220 and 1.6250.
View Live Chart for GBP/USD
Technically, the pair breached the 23.6% retracement of its latest bearish run at 1.6190, now immediate resistance as latest recoveries found sellers around it according to the 1 hour chart. In the 4 hours one, indicators had gained bearish momentum, accelerating south below their midlines, supporting some further slides: a downward acceleration below 1.6160 should see the pair extending towards the 1.6110/20 price zone, while if this last gives up, this month low around 1.6050 comes next.
A recovery above 1.6190 on the other hand should take out some of the pressure and see the pair back to its comfort zone between 1.6220 and 1.6250.
View Live Chart for GBP/USD
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