15 Jul 2014
GBP/USD passed the CPI test, Labor is on tap
FXStreet (Moscow) - GBP/USD bounced from 1.7058 low before the release of the CPI data, and moved to 1.7139 right after.
The CPI is out
The pair came under pressure before the Inflation report release, as most market participants expected lower CPI data. The index came out much better than expected at +0.2% m/m, and +1.9% y/y vs. -0.1% m/m, and +1.6% y/y. The pair moved to 1.7139 on the release, as the market took the data as the confirmation of further recovery of the British economy, and sooner than expected first rate hike. Remember, inflation and labor reports are the key factors the BOE take into consideration when making a decision on monetary policy. The next target to the upside for the pair may lie at 1.7174.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.7099, with support below at 1.7054, 1.7024, and 1.6979 with resistance above at 1.7129, 1.7174, and 1.7204. Hourly Moving Averages are largely bearish, with the 200SMA at 1.7132, and the daily 20EMA bullish at 1.7067. Hourly RSI is bearish at 42.
The CPI is out
The pair came under pressure before the Inflation report release, as most market participants expected lower CPI data. The index came out much better than expected at +0.2% m/m, and +1.9% y/y vs. -0.1% m/m, and +1.6% y/y. The pair moved to 1.7139 on the release, as the market took the data as the confirmation of further recovery of the British economy, and sooner than expected first rate hike. Remember, inflation and labor reports are the key factors the BOE take into consideration when making a decision on monetary policy. The next target to the upside for the pair may lie at 1.7174.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.7099, with support below at 1.7054, 1.7024, and 1.6979 with resistance above at 1.7129, 1.7174, and 1.7204. Hourly Moving Averages are largely bearish, with the 200SMA at 1.7132, and the daily 20EMA bullish at 1.7067. Hourly RSI is bearish at 42.