GBP/USD: A phase of consolidation below 100-DMA ahead of UK CPI

The vertical rise in GBP/USD ran into the 100-DMA resistance late-Monday, knocking-off rate slightly lower near 1.2670 region, where it now consolidates.

The major now turns negative amid cautious trading witnessed in the Asian equities, curbing the demand for risk assets such as the GBP, as pre-Fed nervousness sets into markets ahead of a 2-day FOMC meeting likely to be commenced later today.

However, the downside remains capped amid latest comments from the UK Chancellor Hammond, making a case for a ‘Slower Brexit’ and upbeat Chinese data dump. Focus now shifts towards the UK CPI report due later in the session ahead.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2700 (100-DMA), 1.2747 (Dec 2 high) and 1.2776 (Dec 6 high). While supports are seen at 1.2654 (10-DMA) and 1.2623 (5-DMA) and below that at 1.2492 (daily S2).