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18 Jun 2013
GBP/USD wavers after US CPI, hits 1-week low
FXstreet.com (Córdoba) - The GBP/USD wavered sharply data showed US consumer prices rose in May, mainly in line with expectations, while housing data disappointed.
GBP/USD dips to weekly lows
GBP/USD initially received a mild boost and rose to the 1.5615 zone from 1.5590 before the CPI, but quickly turned back south, dipping to fresh weekly lows. At time of writing, GBP/USD is trading at the 1.5575 zone, down 0.9% on the day, having hit a low of 1.5570 in recent dealings.
As for technical levels, GBP/USD could find immediate supports at 1.5520 (Jun 11 low) and 1.5500 (psychological level), while resistances are now seen at 1.5620 (200-hour SMA) and 1.5690 (200-day SMA).
Ahead of the FOMC
The greenback weakened as knee-jerk reaction to the data given that inflation pressures don't seem to be strong enough to prompt an early QE tapering process from the Fed. However, at this point data impact should be short-lived as investors await the Fed itself to shed more light on the future of the stimulus program.
GBP/USD dips to weekly lows
GBP/USD initially received a mild boost and rose to the 1.5615 zone from 1.5590 before the CPI, but quickly turned back south, dipping to fresh weekly lows. At time of writing, GBP/USD is trading at the 1.5575 zone, down 0.9% on the day, having hit a low of 1.5570 in recent dealings.
As for technical levels, GBP/USD could find immediate supports at 1.5520 (Jun 11 low) and 1.5500 (psychological level), while resistances are now seen at 1.5620 (200-hour SMA) and 1.5690 (200-day SMA).
Ahead of the FOMC
The greenback weakened as knee-jerk reaction to the data given that inflation pressures don't seem to be strong enough to prompt an early QE tapering process from the Fed. However, at this point data impact should be short-lived as investors await the Fed itself to shed more light on the future of the stimulus program.