GBP/USD holds stable below 1.3200 handle post-US macro data
| • US headline CPI comes in at 0.1% m-o-m, yearly rate eases to 2.0%.
• Retail sales post a modest growth of 0.1% m-o-m, betters expectations.
• USD fails to rebound after mostly in-line macro data.
The UK jobs data-led volatility around the British Pound seems to have receded, with the GBP/USD pair now trying to stabilize around the 1.3170-75 region.
The pair had a rather muted reaction to the key US macro data that showed a 0.1% m-o-m increase in the headline CPI, with the yearly rate easing to 2.0% and core CPI ticking higher to 1.7% in October.
Separately, October monthly retail sales posted a modest growth of 0.2% m-o-m, as against a flat reading expected, while excluding automobiles sales grew 0.1% inter-month.
With December Fed rate hike action fully discounted the market appears to have, today's economic data was seen having little monetary policy implication and hence, failed to provide any meaningful boost to the US Dollar.
Technical outlook
Valeria Bednarik, American Chief Analyst at FXStreet writes, "as in the 4 hours chart, the pair retreated from the 61.8% retracement of its latest decline, and struggles now around the 50%. Technical indicators in the mentioned time frame are gyrating slowly lower but still above their mid-lines, whilst the 20 SMA converges with the next Fibonacci level around 1.3140. Below this last, the next intraday supports and probable bearish targets are 1.3100 and the 1.3060 price zone. To the upside, the 1.3200/20 price zone has proved strong in the past, with gains beyond it required now to consider an extension upward towards the 1.3270 price zone."
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