GBP/USD off-lows, re-takes 1.3350 ahead of UK CPI

The GBP/USD pair stalled its overnight retreat at 10-DMA, the bulls are now seen fighting for control amid a cautious tone prevalent in the markets, as all eyes remain focused on the UK inflation report.

GBP/USD expectant of upbeat UK CPI

Currently, GBP/USD modestly flat at 1.3335, attempting gains beyond 1.3340 barrier. The pound recovers losses and trades largely subdued versus the USD in early Europe, as the bulls take a breather after yesterday’s solid rebound, which was triggered by more dovish-than expected remarks from Fed Governor Brainard, as she noted that Fed should not hurry on raising rates further.

However, further upside appears capped as markets remain wary and refrain from placing big bets on the major heading into the UK CPI report due later in the European session. While focus also remains on the global yields, especially after the recent spike, as it weighs on the higher-yielding currencies such as the GBP.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3351 (post-Brainard high), above which 1.3377 (Sept 8 high) would be tested. On the flip side, support is seen at 1.3302 (5-DMA) below that at 1.3240 (20-DMA).