GBP/USD quickly reverses headline US CPI-led dip, back around mid-1.3300s

   •  In-line headline CPI negated by softer core CPI print.
   •  USD fails to gain positive traction on mixed reading. 
   •  Focus remains on the key FOMC decision. 

The GBP/USD pair finally broke out of its post-UK jobs volatile trading range and dropped 1.3325 level post-headline US CPI print, albeit quickly recovered few pips thereafter. 

The US Dollar gained some traction after data released from the US showed the headline consumer inflation, as measured by CPI, matched expectations and rose 0.4% m-0-m in November, with the yearly rate ticked higher to 2.2% from last month's 2.0%. 

The pair, however, quickly recovered a knee-jerk slide as the in-line headline number was largely negated by softer core CPI (excluding food and energy), which dipped to 1.7% on a y-o-y basis during the reported period. 

The pair quickly rebounded back to the pre-release level, around mid-1.3300s, as the market focus remains on the highly-anticipated FOMC decision, due to be announced later during the NY trading session.

Technical levels to watch

Bulls would be eyeing for a move beyond 1.3370-80 hurdle, above which the pair is likely to surpass the 1.3400 handle and head towards testing its next hurdle near the 1.3430-35 region.

On the flip side, weakness below 1.3325 level might continue to find support near the 1.3300 handle, below which the pair is likely to accelerate the fall towards 50-day SMA support near the 1.3250-45 region.