GBP/USD advances to 1.3260 post-UK CPI

Pablo Piovano FXStreet

The upside momentum around the British Pound is now picking up extra pace, sending GBP/USD to fresh tops in the mid-1.3200s.

GBP/USD bid after data

Cable was boosted further after inflation figures in the UK economy surprised investors to the downside today. Headline consumer prices tracked by the CPI rose at an annualized 2.9% (vs. 2.8% forecasted), while prices excluding food and energy costs rose above expectations 2.7% over the last twelve months.

On a monthly basis, consumer prices also rose more than initially estimated 0.6%, sharply reverting July’s 0.1% contraction.

The pair is thus extending the upside to fresh 6-week tops and trades at shouting distance from fresh cycle tops near 1.3270, recorded earlier in August.

GBP/USD levels to consider

As of writing the pair is up 0.66% at 1.3251 and a break above 1.3261 (high Sep.12) would open the door to 1.3266 (2017 high Aug.3) and finally 1.3447 (high Sep.6 2016). On the flip side, the immediate support lines up at 1.3161 (low Sep.11) seconded by 1.3049 (10-day sma) and finally 1.2992 (55-day sma).

Author

Pablo Piovano

FXStreet

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

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