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Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is extending its correction lower from yesterday’s peaks near 1.6020, pushing the GBP/USD below the key support at 1.6000 to the current area of 1.5980/85.

GBP/USD eyes on UK CPI

While the events from the US fiscal stand-off look set to prevail throughout the week, the pound faces an interesting docket, kicking in today with the release of the inflation figures for the month of September. Prior surveys expect consumer prices to remain elevated, expanding 0.3% inter-month and 2.6% over the last twelve months. Axel Rudolph, Senior Technical Analyst at Commerzbank, argued the pair “seems to have found support around the July-to-October uptrend line at 1.5945. Why it is likely that this will continue to hold for a few more days, our favoured scenario is that the rebound will turn out to be tepid with it remaining below the 1.6123 October 8 high”.

GBP/USD relevant levels

The pair is now losing 0.04% at 1.5976 with the immediate support at 1.5955 (low Oct.14) followed by 1.5923 (low Oct.11) and finally 1.5914 (low Oct.10). On the upside, a break above 1.6018 (high Oct.18) would aim for 1.6052 (MA21d) and then 1.6061 (MA10d).
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