|

GBP/USD comes down to test 1.33 on CPI

The Sterling is now losing the grip vs. the greenback, dragging GBP/USD to fresh daily lows in the 1.3300 neighbourhood.

GBP/USD lower on downbeat CPI

Spot met further downside pressure after UK’s consumer prices tracked by the CPI have risen below expectations at an annualized 0.6% (vs. 0.7% expected), while Core prices gained 1.3% on a year to August (vs. 1.4% forecasted). On a monthly basis, the CPI has followed suit, up 0.3% vs. 0.4% initially estimated.

GBP will remain under scrutiny later in the week, as UK’s labour market figures are due tomorrow followed by August’s Retail Sales on Thursday.

In the meantime, the pair is retracing part of yesterday’s advance, finding decent support in the 1.3240 area for the time being.

GBP/USD levels to consider

As of writing the pair is retreating 0.17% at 1.3314 with the next support at 1.3213 (20-day sma) followed by 1.3152 (support line off July’s top) and finally 1.3121 (low Aug.30). On the flip side, a breakout of 1.3447 (high Sep.6) would aim for1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move).

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD posts modest gains above 1.1700 as ECB signals pause

The EUR/USD pair posts modest gains around 1.1710 during the early Asian session on Monday. The Euro strengthens against the Greenback after the European Central Bank left its policy rates unchanged and took a more positive view on the Eurozone economy, which has shown resilience to global trade shocks. Financial markets are likely to remain subdued as traders book profits ahead of the long holiday period.

GBP/USD gains ground near 1.3400 ahead of UK Q3 GDP data

GBP/USD gains ground after three days of losses, trading around 1.3390 during the Asian hours on Monday. The pair depreciates as the Pound Sterling holds ground ahead of the release of the United Kingdom Gross Domestic Product for the third quarter.

Gold sits at record high near $4,400 amid renewed geopolitical woes

Gold is sitting near $4,400 early Monday, renewing lifetime highs, helped by renewed geopolitical tensions. Israel-Iran conflict and US-Venezuela headlines drive investors toward the traditional store of value, Gold. 

Top Crypto Gainers: Audiera, Midnight, MemeCore sustain weekend gains

Audiera, Midnight, and MemeCore recorded double-digit gains on Sunday and remain top performers over the last 24 hours. Audiera extends the rally while Midnight takes a breather, and MemeCore struggles at a crucial moving average. 

De-dollarisation by design: Gold’s partner in the new system

You don’t need another 2008 for the system to reset. You just need enough nations to stop settling trade in dollars. And that’s already happening. "If gold is the anchor, what actually moves value in a post-dollar world?” It’s a question most gold investors overlook. We think in terms of storage and preservation, but in the new rails being built, settlement speed matters just as much as soundness of money.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.