Filed Under:
Forex pairs in this Article » GBP/USD (Edinburgh) -The bull run of the sterling seems to have run out of legs in the vicinity of 1.5950, with the GBP/USD now partially fading those gains to 1.5930/25.

GBP/USD supported around 1.5850

Much lower than expected consumer prices in the British economy during October, with headline CPI rising 2.2% and Core prices advancing 0.9% on a yearly basis, vs. 2.5% and 2.0% respectively, have sparked a sharp sell-off in the pair, dragging it to multi-week lows around 1.5850. Rob Carnell, Strategist at ING, commented “With the UK inflation report due tomorrow, today's release may take some of the pressure off the Bank of England to substantially alter their previous, and by now, not very credible guidance for a first hike in Bank Rate in mid 2016.Tomorrow's labour market report will also be critical in any change to the policy guidance, and if we see further falls in the unemployment rate, this could trump any improvement in the inflation backdrop suggested by today's figures”.

GBP/USD key levels

As of writing the pair is losing 0.44% at 1.5920 with the next support at 1.5844 (50% of 1.5427-1.6260) ahead of 1.5776 (low Sep.12) and then 1.5686 (low Sep.10). On the flip side, a surpass of 1.5992 (high Nov.12) would bring 1.6011 (MA10d) and then 1.6064 (MA30d).
comments powered by Disqus