GBP/USD held up on softer UK inflation

By FXstreet.com | June 17, 2014 AAA

FXStreet (Barcelona) - GBP/USD is trading at 1.6957, down -0.14% on the day, having posted a daily high at 1.6991 and low at 1.6938.



GBP/USD is still on the 1.69 handle despite the Softer-than-expected UK inflation which nonetheless, strategists at Brown Brothers Harriman suggest is threatening to halt sterling's advancing streak to five sessions. “Consumer prices slipped 0.1% in May, while the consensus expected an increase of 0.1-0.2%. The y/y rate of 1.5% represents a four year low. The market responded in the expected way, pushing short-sterling interest rate futures higher and sterling lower. However, after the knee-jerk reaction, the markets stabilized, sustaining only modest moves. Sterling bulls were already a bit vulnerable after the push through $1.70 yesterday was not sustained”.



GBP/USD Levels



With spot trading at 1.6960, we can see next resistance ahead at 1.6967 (Hourly 20 EMA), 1.6975 (YTD High), 1.6982 (Monthly High), 1.6982 (Weekly High) and (Annual High). Support below can be found at 1.6959 (Yesterday's Low), (Daily Classic S1), 1.6938 (Daily Low), 1.6931 (Daily Classic S2) and 1.6919 (Hourly 100 SMA).



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