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Forex pairs in this Article » GBP/USD (Barcelona) - Despite ranging between 1.6374-1.6346 overnight, GBP/USD has declined during the early European session to post a low at 1.6312, just below where spot is presently trading at 1.6327.

GBP/USD risks skewed to downside

Following yesterday's decline in CPI which meet the 2% inflation target for the first time in four years, GBP/USD has continued to trade softer in recent price action. Aside from a long term paper auction, the docket for UK data is empty today, ahead of Retail Sales tomorrow, so the pair will likely be led by US developments. US CPI falls at 13:30 GMT, ahead of Bernanke´s speech at 16:10 GMT. Following its push below the overnight range, spot found support at the daily S1 at 1.6312, which also doubles up as the 38.2% Fibonacci Retracement of the 1.5833-1.6602 climb.

What are today´s key GBP/USD levels?

Hourly RSI sits at 34, just above oversold territory. Spot is presently trading at 1.6329 and the daily central pivot point sits at 1.6381 providing resistance. Support below can be found at 1.6320-30 (Corp and leveraged bids), 1.6320 (Sell stops commence), 1.6315 (S1), 1.6300-10 (Light Corporate bids), 1.6256 (S2), 1.6250-60 (Option and leveraged bids), 1.6200 (Option and Corporate bids), & 1.6190 (S3). Resistance above can be seen 1.6440 (R1), 1.3480 (Corporate and real money offers), 1.6506 (R2), 1.6520 (Buy stops commence), 1.6500-20 (Prop account offers), 1.6440-50 (Prop account offers), & 1.6565 (R3)
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