GBP/USD eases further to 1.5140

FXStreet (Edinburgh) - The sterling is trading on the back foot vs. the US dollar on Tuesday, dragging GBP/USD to the area of session lows in the 1.5145/40 region.

GBP/USD focus on CPI figures

Spot is coming down from overnight peaks in the 1.5190 neighborhood while traders focus on the inflation releases due later in the British economy. Prior surveys expect the inflation gauged by the CPI to have eased to 0.7% YoY during December vs. 1.0% in the previous month; Core prices are expected to have ticked higher to 1.4% from 1.2%. In the opinion of Emmanuel Ng, FX Strategist at OCBC Bank, “we continue to expect a consolidative tone around 1.5200 with risks still tilted towards the recent lows around 1.5035”.

GBP/USD key levels

The pair is now retreating 0.28% at 1.5135 and a breakdown of 1.5099 (low Jan.12) would open the door to 1.5078 (low Jan.9) and then 1.5028 (low Jul.15 2013). On the other hand, the initial resistance aligns at 1.5195 (high Jan.12) followed by 1.5274 (high Jan.6) and then 1.5297 (10d MA).

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