Forex: GBP/USD rallies over Oct-5 high on UK CPI
Forex pairs in this Article »
GBP/USD
FXstreet.com (Barcelona) - Ahead of the London opening, the GBPUSD kept retracing its gains and threatened leaving 1.6200 by printing a low at 1.6195, but support at the psychological level triggered a jump off to 1.6226 high, for now, as the UK inflation reports were released and dropped less than expected. The UK Retail Price index eased from 3.2% to 3.0% (YoY), disappointing an unchanged consensus. The monthly figure came in at 0.0%, while analysts expected a +0.2% rise.
The November CPI (YoY) remained at 2.7%, despite 2.6% consensus, and the monthly figure rose +0.2% as expected. The PPI data turned contractionary on the annualized basis, from +0.1% to -0.3%, still higher than the expected -0.5%. The monthly PPI rose +0.1%, instead of declining -0.1%.
"Overall bulls remain intact for fresh extension higher that would focus key 1.6300 resistance zone. However, corrective easing may precede rally, as hourly indicators are reversing", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to initial support lies at 1.6180/70 zone (previous tops and Fib 38.2% of 1.6084/1.6218 ascend).
The November CPI (YoY) remained at 2.7%, despite 2.6% consensus, and the monthly figure rose +0.2% as expected. The PPI data turned contractionary on the annualized basis, from +0.1% to -0.3%, still higher than the expected -0.5%. The monthly PPI rose +0.1%, instead of declining -0.1%.
"Overall bulls remain intact for fresh extension higher that would focus key 1.6300 resistance zone. However, corrective easing may precede rally, as hourly indicators are reversing", wrote Windsor Brokers analyst Slobodan Drvenica, pointing to initial support lies at 1.6180/70 zone (previous tops and Fib 38.2% of 1.6084/1.6218 ascend).
Free Annual Reports
