• GBP/USD is juggling in six-pips as investors are expected to create positions post US Inflation data.
  • For Fed’s neutral stance, a spree of a slowdown in price pressures is required.
  • The UK's GDP is expected to remain vulnerable ahead.

The GBP/USD pair is displaying topsy-turvy moves in a range of 1.2079-1.2085 after a mild recovery from a low near 1.2070. Investors have preferred to remain on the sidelines ahead of the US Consumer Price Index (CPI) data, which is highly expected to surprise the market participants this time.

The investing community is aware of the fact that soaring oil prices remained responsible for driving the price pressures to the sky. Now, fixed supply worries and a gloomy demand outlook on the oil front resulted in a steeper fall in oil prices. And, its multiplier effect will be witnessed in the inflation rate.

The street estimates are indicating a decent drop in the plain-vanilla inflation rate by 40 basis points (bps) to 8.7% from the prior release. Whereas, the core CPI that doesn’t inculcate oil and food prices is expected to elevate to 6.1% from the prior release of 5.9%.

For the Federal Reserve (Fed) to remain calm and turn neutral, a series of drops in the cost-push inflation is desired. A one-time slowdown in the price pressures won’t be enough to trim the journey towards the neutral rate, however, exhaustion signals would delight Fed policymakers.

On the UK front, the Gross Domestic Product (GDP) is expected to land at -0.2% vs. 0.8% in the prior release. And, the annual data is indicating a downward shift to 2.8% against the prior release of 8.7%. Also, the estimates for Manufacturing Production data are not displaying a rosy picture. The economic data is likely to tumble to 1.3% from the former print of 2.3%. This may keep the pound bulls on the back foot.

GBP/USD

Overview
Today last price 1.2083
Today Daily Change 0.0004
Today Daily Change % 0.03
Today daily open 1.2079
 
Trends
Daily SMA20 1.205
Daily SMA50 1.2158
Daily SMA100 1.2455
Daily SMA200 1.2933
 
Levels
Previous Daily High 1.213
Previous Daily Low 1.2063
Previous Weekly High 1.2294
Previous Weekly Low 1.2003
Previous Monthly High 1.2246
Previous Monthly Low 1.176
Daily Fibonacci 38.2% 1.2089
Daily Fibonacci 61.8% 1.2105
Daily Pivot Point S1 1.2051
Daily Pivot Point S2 1.2024
Daily Pivot Point S3 1.1985
Daily Pivot Point R1 1.2118
Daily Pivot Point R2 1.2158
Daily Pivot Point R3 1.2185

 

 

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