FxWirePro: GBPUSD trades lower on weak UK CPI data, good to buy on dips
Cable has shown a minor dip after release of UK CPI data. The pair declined 30 pips on account of weaker than expected UK CPI data.US dollar pared some of its losses made yesterday. Market eyes fed FOMC meeting tomorrow …
Cable has shown a minor dip after release of UK CPI data. The pair declined 30 pips on account of weaker than expected UK CPI data.US dollar pared some of its losses made yesterday. Market eyes fed FOMC meeting tomorrow for further direction. The pair hits high of 1.40889 yesterday and is currently trading around 1.40270.
UK CPI data came at 2.7 YOY compared to forecast of 2.8% and core CPI also came slightly below estimate at 2.4% compared to forecast of 2.5%.
Technically on the lower side, near term support is around 1.4000 and any break below will drag the pair down till 1.3960/1.3928/1.3900. Major weakness can been only below 1.3700.
The near term resistance is around 1.4010 and break above will take the pair till 1.4145. The pair should break above 1.4070 for further upside.
It is good to buy on dips around 1.4000 with SL around 1.3940 for the TP of 1.4140.
