GBP/USD: good news or bad news?
|GBP/USD Current price: 1.3099
- UK inflation figures missed market's expectations in October.
- US PPI up, but not enough to trigger USD demand.
The British Pound can't gather pace upward, despite dollar's generalized weakness, as UK data released this Tuesday resulted below expected. The pair trades within Monday's range, marginally lower in the day, but stuck around the 1.3100 figure, as the greenback suffers its own woes. In the UK, inflation remained steady at 3.0% in October, below market's expectations of an advance toward 3.1%. Producer Prices and the Retail Price index also rose by less-than-expected, but remain near the latest highs. Lower UK inflation means inaction from the BOE, and despite good news in the current situation, ended up weighing on the Pound. In the US, Producer prices rose more than expected in October, up 0.4% in October, against a 0.1% increase expected, amid higher services' costs. The core reading, ex-food and energy, also rose by 0.4% against the expected 0.2%. Technically the 4 hours chart shows that the price is moving back and forth around the 23.6% retracement of its latest decline, still below its 20 SMA and with technical indicators heading marginally lower within bearish territory, leaning the scale towards the downside. Still, the pair would need to break below the 1.3060 support to confirm additional declines ahead that could extend through the key 1.3000 threshold.
Support levels: 1.3095 1.3060 1.3025
Resistance levels: 1.3145 1.3180 1.3220
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.