GBP/USD moves above 1.3200 on UK CPI

Cable picks up pace above 1.3200 post-CPI.
UK inflation figures surprised to the upside in August.
Headline CPI rose 0.7% MoM and Core CPI rose 2.1% YoY.

Pablo Piovano FXStreet

The buying interest around the Sterling remains well and sound so far on Wednesday and is now lifting GBP/USD to test fresh tops above 1.3200 the figure.

GBP/USD higher on CPI

Cable has broken above the 1.3200 mark after UK inflation figures tracked by the CPI rose more than initially estimated during August.

In fact, headline consumer prices rose at a monthly 0.7% and 2.7% over the last twelve months, while prices stripping food and energy costs rose at an annualized 2.1%.

In the meantime, Cable remains supported by the persistent weakness around the greenback and the generalized better tone in the risk-associated sphere, all despite lingering uncertainty regarding the Brexit negotiations.

GBP/USD levels to consider

As of writing, the pair is up 0.42% at 1.3205 and a break above 1.3215 (high Jul.26) would aim for 1.3364 (high Jul.9) and finally 1.3523 (200-day SMA). On the flip side, the immediate support aligns at 1.3067 (10-day SMA) seconded by 1.2983 (21-day SMA) and finally 1.2785 (low Sep.5).

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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