GBP/USD steady after US PPI

By FXstreet.com | July 16, 2014 AAA

FXStreet (Córdoba) - The GBP/USD remained barely unaffected following the release of higher-than-expected US producer price index figures.



US producer price index rose 1.9% YoY in June, matching forecast, while the core index rose 1.8% versus 1.7% expected.



The GBP/USD edged slightly higher after data and reached an hourly high of 1.7137 but lacked follow through. At time of writing, the pair is trading at 1.7135, just a few pips below its opening price.



However, the pair did enjoy some volatility earlier and wavered between a high of 1.7150 and a low of 1.7111 after the UK reported the unemployment fell more than expected in May. Even though the unemployment rate fell to 6.5%, wages only grew 0.3% YoY, well below the 1.9% rate on inflation.

GBP/USD technical levels



As for technical levels, the GBP/USD could find next resistances at 1.7150 (Jul 16 high), 1.7190 (2014 high Jul 15) and 1.7203 (Oct 21 2008 high). On the other hand, supports are seen at 1.7111 (Jul 16 low), 1.7058 (Jul 15 low) and 1.7009 (Jun 30 low).



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