GBP/USD: UK CPI to raise spirits

The cable had some good two-way price moves on Tuesday and finally settled with only modest losses.  Investors now look forward to the UK consumer inflation figures for a fresh impetus, Haresh Menghani from FXStreet reports.

Key quotes

“Market participants now look forward to the latest UK consumer inflation figures, which along with any Brexit-related headlines might influence the GBP price dynamics.”

“Later during the American session, the US economic releases – housing market data and Producer Price Index – and speeches by influential FOMC members might further contribute towards producing some meaningful trading opportunities.”

“Bulls are likely to wait for a sustained move beyond 50-day SMA, around the 1.3050-60 region, before positioning for any further near-term appreciating move. Above the mentioned barrier, the pair seems more likely to aim towards surpassing the 1.3100 round-figure mark and head towards testing its next major hurdle near the 1.3145-50 resistance zone.”

“On the flip side, GBP/USD might continue to attract some buying ahead of mid-1.2900s. This is closely followed by 100-day SMA support near the 1.2930 region.”