GBP/USD firmer near 1.2370 ahead of UK CPI

The Sterling is trading on a better mood vs. the buck ahead of the opening bell in Europe on Tuesday, taking GBP/USD to the 1.2370/80 band for the time being.

GBP/USD focus on UK data

Spot is reverting yesterday’s pullback despite coming down from recent highs in the 1.2440 region in a context of broad-based offered bias around the greenback.

The pair seems to have difficulty to overcome the tough resistance line off YDT tops beyond 1.2700 the figure recorded in early February, however, which is currently located in the 1.2420 zone.

News from the UK cited PM Theresa May is expected to trigger Article 50 on March 29. The upcoming (and presumably long) negotiation process of the UK-EU divorce should be the main driver for GBP’s price action in the next months.

On another direction, the British Pound remains under pressure from the positioning side, as speculative net shorts climbed to record levels during the week ended o March 14 according to the latest CFTC report.

Data wise today, UK’s inflation figures for the month of February are due along with Public Sector finances, CBI’s Industrial Trends Orders and the speech by Governor M.Carney.

Across the pond, all the attention should be on the speeches by Ney York Fed W.Dudley (permanent voter, centrist), Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish).

GBP/USD levels to consider

As of writing the pair is up 0.12% at 1.2372 and a breakout of 1.2414 (100-day sma) would aim for 1.2437 (high Mar.20) and finally 1.2572 (high Feb.24). On the flip side, the next support aligns at 1.2333 (low Mar.20) followed by 1.2313 (20-day sma) and then 1.2239 (low Mar.16).