GBP/USD pares daily gains, trades below 1.3600 on renewed USD strength

GBP/USD reversed its direction after US inflation data.
US Dollar Index edges higher toward 94.50 following earlier decline.
Eyes on Brexit headlines, FOMC September Meeting Minutes.

Eren Sengezer FXStreet

The GBP/USD pair reversed its direction after climbing toward 1.3650 earlier in the day and retraced the majority of its daily advance. As of writing, the pair was up only 0.05% on the day at 1.3592.

DXY recovers on inflation data

Renewed dollar strength on US September inflation report seems to be weighing on GBP/USD at the beginning of the American session. The monthly report published by the US Bureau of Labor Statistics revealed that the annual Consumer Price Index (CPI) edged higher to 5.4% in September from 5.3% in August. Additionally, the Core CPI, which excludes volatile food and energy prices, stayed unchanged at 4% on a yearly basis.

Reflecting the positive impact of the CPI data on the greenback, the US Dollar Index (DXY) rebounded from the daily low it touched at 94.24 and was last seen losing 0.7% at 94.43.

Later in the day, investors will be keeping a close eye on the developments surrounding Brexit. Maroš Šefčovič, European Commission Vice President of Interinstitutional Relations and Foresight, will deliver the EU's proposal on the Northern Ireland Protocol at 1630 GMT.

Moreover, the FOMC will publish the minutes of its September meeting at 1800 GMT.

FOMC Minutes Preview: Fed to reiterate taper message, sending the dollar up, stocks down.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.3593
Today Daily Change	0.0005
Today Daily Change %	0.04
Today daily open	1.3588

Trends
Daily SMA20	1.3632
Daily SMA50	1.3731
Daily SMA100	1.3834
Daily SMA200	1.3844

Levels
Previous Daily High	1.3638
Previous Daily Low	1.3568
Previous Weekly High	1.3659
Previous Weekly Low	1.3532
Previous Monthly High	1.3913
Previous Monthly Low	1.3412
Daily Fibonacci 38.2%	1.3595
Daily Fibonacci 61.8%	1.3611
Daily Pivot Point S1	1.3559
Daily Pivot Point S2	1.3529
Daily Pivot Point S3	1.349
Daily Pivot Point R1	1.3628
Daily Pivot Point R2	1.3667
Daily Pivot Point R3	1.3697

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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