GBP/USD tumbles to lows near 1.3070 on UK CPI
|- UK’s inflation figures surprised to the downside.
- Cable broke below 1.3100 in the wake of data.
- Focus on Carney’s speech at ECB policy panel.
The Sterling is testing daily lows vs. the greenback on Tuesday, dragging GBP/USD to the vicinity of 1.3070 following the publication of October’s inflation figures.
GBP/USD offered on data
Cable met fresh sellers after UK’s inflation figures missed expectations in October. In fact, consumer prices rose at a monthly 0.1% (vs. 0.2% expected) and 3.0% over the last twelve months (vs. 3.1% forecasted).
In addition, prices stripping food and energy prices also followed suit, rising 0.1% inter-months (vs. 0.2% estimated) and 2.7% on a yearly basis (vs. 2.8% from prior surveys).
Spot dropped to the area of 1.3070, re-testing at the same time yesterday’s lows and the key 3-month support line off August’s low.
GBP should stay under pressure in light of Governor M.Carney’s speech at the ECB policy panel, with Chief Yellen, Kuroda and Draghi.
GBP/USD levels to consider
As of writing the pair is losing 0.18% at 1.3091 facing the immediate support at 1.3062 (low Nov.13) seconded by 1.3039 (low Nov.3) and finally 1.2878 (200-day sma). On the upside, a breakout of 1.3139 (10-day sma) would expose 1.3167 (21-day sma) and then 1.3222 (resistance line).
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.