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Forex pairs in this Article » GBP/USD (Barcelona) - GBP/USD is suffering on the offer after weaker inflation data recording a low for the session on Tuesday of 1.6215.

GBP/USD lost the 1.63 handle after a high of 1.6338 and currently oscillates in 1.6260/70. The headline CPI number is in line of the BoE’s medium term target of +2% and below the +2.5% level which would have otherwise given rise to speculation for a policy of tightening in the near future. The downside is in view below the former resistance channel formed in September and below 1.6260. Meanwhile, the FOMC meeting gets underway today (concludes Wednesday with a press conference). Strategists at TD Securities explained, “While markets view a taper decision this week as possible, it is not viewed as probable—indeed, our base case calls for tapering to start in January (USD15 bn reduction in asset purchases)”.

GBP/USD Levels

The 20 DMA is 1.6301, the 50 DMA is 1.6156 and the 200 DMA is 1.5610. RSI (14) reads 48.31. Supports are ascending from 1.6245, 1.6255, 1.6263, 1.6290,1.6319, 1.6360, 1.6420, 1.6468 and 1.6475.
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