GBP/USD remains well bid above mid-1.2500s, or weekly tops post-US CPI


  • Hotter-than-expected US headline and core CPI help ease the USD bearish pressure.
  • Expectations of a 50 bps rate cut by the Fed might cap any attempted USD recovery. 

The GBP/USD pair maintained its strong bid tone through the early North-American session, albeit retreated few pips from weekly tops post-US CPI.

The bearish pressure surrounding the US Dollar - triggered by the Fed Chair Jerome Powell's dovish remarks, eased a bit following the release of slightly stronger-than-expected US consumer inflation figures for June.

In fact, the consumer inflation - as measured by headline CPI, ticked higher by 0.1% during the reported period as compared to consensus estimates pointing to a flat reading expected, while the yearly rate held steady at 1.6%.

Meanwhile, the core CPI - excluding food and energy costs, also bettered market expectations - rising 0.3% and 2.1% on monthly and yearly basis respectively and provided a much-needed respite to the USD bulls.

However, the fact that market participants have already started pricing in a 50 bps rate cut by the Fed later this July kept a lid on any strong USD recovery and should help limit any meaningful pullback, at least for now.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2564
Today Daily Change 0.0065
Today Daily Change % 0.52
Today daily open 1.2499
 
Trends
Daily SMA20 1.2617
Daily SMA50 1.2724
Daily SMA100 1.2915
Daily SMA200 1.2897
Levels
Previous Daily High 1.2522
Previous Daily Low 1.2444
Previous Weekly High 1.2706
Previous Weekly Low 1.2481
Previous Monthly High 1.2784
Previous Monthly Low 1.2506
Daily Fibonacci 38.2% 1.2492
Daily Fibonacci 61.8% 1.2474
Daily Pivot Point S1 1.2455
Daily Pivot Point S2 1.241
Daily Pivot Point S3 1.2377
Daily Pivot Point R1 1.2533
Daily Pivot Point R2 1.2567
Daily Pivot Point R3 1.2611

 

 

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