GBP/USD spiked to 1.3290 on CPI

GBP/USD briefly tested the vicinity of the 1.3290 handle following the release of inflation figures in the UK for the month of September.

GBP/USD stays bid on data

Cable keeps the proximity to session peaks after UK’s inflation figures showed headline consumer prices rising at an annualized 3.0% and 0.3% inter-month, both prints matching previous estimates.

Additionally, prices stripping food and energy costs rose 2.7% over the last twelve months, also in line with prior surveys.

In the meantime, spot keeps the positive tone and is reverting Monday’s pullback, although weekly gains are still capped around 1.3220, coincident with the 21-day sma.

Later in the session, Governor M.Carney and MPC members S.Tenreyro and D.Ramsden are due to speak at the Treasury Committee Hearings.

In the US docket, export/import price index is due, seconded by September’s capacity utilization, industrial and manufacturing production, the NAHB index and TIC flows.

GBP/USD levels to consider

As of writing the pair is advancing 0.14% at 1.3271 facing the next resistance at 1.3324 (21-day sma) seconded by 1.3338 (high Oct.16) and finally 1.3548 (2014-2017 down trend). On the flip side, a breakdown of 1.3205 (10-day sma) would aim for 1.3145 (55-day sma) and then 1.3121 (low Oct.12).