GBP/USD: Bulls eye 1.3115 on Trumpcare failure, UK CPI - Key
|The offered tone behind the greenback strengthened sharply in the Asian trades, sending the GBP/USD pair northwards, in a bid to regain 1.31 handle ahead of the UK CPI release.
GBP/USD: Focus shifts to UK CPI
The spot caught a sudden bid-wave and broke sharply higher from its overnight bearish consolidation phase, after the US dollar slumped to fresh ten-month lows versus its main competitors on the Trumpcare bill debacle.
Senate Republicans reject Trump's health care bill
Moreover, narrowing monetary policy divergence between the Fed and BOE, especially after last week’s dovish Yellen’s remarks and downbeat slew of US macro releases, bolsters the latest move higher in the GBP/USD pair.
However, negative Asian equities is somewhat weighing negatively on the risk currency GBP, keeping the gains just shy of 1.31 handle. Also, the GBP traders remain unnerved ahead of the UK inflation data, which could throw a fresh light on the BOE’s rate hike prospects this year. Inflation in the UK has overshot the BOE’s 2% target, coming in at 2.9% in last month’s release.
UK: Key data ahead - Wells Fargo
Citi to announce Brexit plan this week - Sky
GBP/USD levels to consider
Valeria Bednarik, Chief Analyst at FXStreet noted, “ In the 4 hours chart, technical indicators have corrected extreme overbought conditions, heading modestly lower within positive territory, whilst the 20 SMA maintains its bullish slope below the current level, converging with the 38.2% retracement of the mentioned rally at 1.2295, a probable bearish target in the case of further Pound's weakness. Support levels: 1.3050 1.3010 1.2965 Resistance levels: 1.3120 1.3160 1.3200.”
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.