GBP/USD plummets a cent post-CPI, near 1.3020

Pablo Piovano FXStreet

The Sterling is now quickly losing momentum following the release of UK inflation figures for the month of June, dragging GBP/USD to the 1.3030/20 band, or session lows.

GBP/USD offered on downbeat data

Cable met a wave of selling pressure after UK inflation figures gauged by the CPI showed consumer prices rose at an annualized 2.6% during last month vs. a forecasted gain of 2.9% and down from May’s 2.9% raise.

Further data saw the CPI coming in flat on a monthly basis (vs. 0.2% estimated and 0.3% previous) while Core prices also rose below expectations 2.4% over the last twelve months.

GBP is poised to remain under pressure ahead in the week in light with the start of the Brexit talks, which should be the key driver for the Sterling in the months to come.

Additionally, Governor Mark Carney is expected to speak at the presentation of the new £10 note at Winchester Cathedral at 1330 GMT.

GBP/USD levels to consider

As of writing the pair is down 0.18% at 1.3032 facing the next support at 1.2959 (10-day sma) followed by 1.2888 (21-day sma) and finally 1.2808 (low Jul.12). On the other hand, a breakout of 1.3115 (2017 high Jul.14) would open the door to 1.3447 (high Sep.6 2016) and then 1.3481 (high Jul.15 2016).

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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