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20 May 2014
GBP/USD loses momentum after UK inflation data
FXStreet (Córdoba) - The GBP/USD spiked to fresh daily highs but quickly pulled back after a mixed bag of UK inflation data.
The GBP/USD, that was rising in anticipation to the CPI, reached a weekly high of 1.6863 but failed to sustain gains as mixed inflation figures lower prospects the BoE would act sooner-than-anticipated. UK annual CPI rose 1.8% in May versus 1.8% expected while annual output PPI rose 0.6% in April versus 0.7% expected.
The GBP/USD quickly retreated after printing fresh highs and it is currently trading at the 1.6825 area, 0.10% above its opening price.
GBP/USD technical levels
As for technical levels, to the upside, next resistances are seen at 1.6863 (May 20 high), 1.6882 (May 13 high) and 1.6900 (psychological level). To the downside, supports could be found at 1.6800 (psychological level), 1.6783 (May 16 low) and 1.6732 (50-day SMA).
The GBP/USD, that was rising in anticipation to the CPI, reached a weekly high of 1.6863 but failed to sustain gains as mixed inflation figures lower prospects the BoE would act sooner-than-anticipated. UK annual CPI rose 1.8% in May versus 1.8% expected while annual output PPI rose 0.6% in April versus 0.7% expected.
The GBP/USD quickly retreated after printing fresh highs and it is currently trading at the 1.6825 area, 0.10% above its opening price.
GBP/USD technical levels
As for technical levels, to the upside, next resistances are seen at 1.6863 (May 20 high), 1.6882 (May 13 high) and 1.6900 (psychological level). To the downside, supports could be found at 1.6800 (psychological level), 1.6783 (May 16 low) and 1.6732 (50-day SMA).