FXStreet (Moscow) - GBP/USD keeps its head down trading at 1.6980 right before the release of the UK CPI data, and reaching 1.6936 post the release.

When inflation is below target

The pound needed some kind of catalyst in order to go on with rising, or return to last week lows. Mark Carney gave just a hint, and now the market will scrutinize every piece of data in order to adjust its expectation on the rate hike. The inflation is one of the key arguments when talking about tightening, thus, when May CPI came out at 1.5 vs 1.7% expected, the market took it as another evidence of delay in rate hike expectations. The pound reacted to the news with a slide posting 1.6936 low on the release. The next target to the downside may be at 1.6904.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6984, with support below at 1.6957, 1.6931, 1.6904 with resistance above at 1.7010, 1.7037, and 1.7063. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6838, and the daily 20EMA bullish at 1.6835. Hourly RSI is bullish at 50.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  2. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  3. Forex News

    Monetary Policy Speculation Continues Next Week With NFPs, RBA and BoE

  4. Forex News

    GBP Opening Monthly Range Hinges on BoE Vote Count, Inflation Report

  5. Forex News

    BoE inflation report - TDS

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!