FxWirePro: GBP/USD runs out of steam but maintains bullish outlook
The GBP/USD dipped on Monday as the Pound found short selling interest after data showed British inflation unexpectedly slowing for the first time since October last year, lowering expectations of an interest rate increa…
The GBP/USD dipped on Monday as the Pound found short selling interest after data showed British inflation unexpectedly slowing for the first time since October last year, lowering expectations of an interest rate increase this year.
Consumer prices rose by 2.6 percent compared with a year earlier, the Office for National Statistics said on Tuesday, down from a nearly four-year high of 2.9 percent in May.
The pair eased to intraday low at 1.3002 following the data release but recovered towards 1.3046 in the US session.
However, more downside is expected to be limited as support level at 1.2964 is set to limit further downward momentum.
To the upside, the strong resistance can be seen at 1.3122, a break above this level would expose the pair towards next resistance level at 1.3182.
To the downside immediate support can be seen 1.3008, a break below at this level will open the door towards next level at 1.2964.
