GBP/USD stalls post-UK data retracement slide, US CPI next

   •  Mixed UK economic data prompts some profit taking following the recent upsurge. 
   •  Investors now seemed reluctant to place aggressive bets ahead of US CPI/FOMC minutes.

The GBP/USD pair stalled its post-UK data retracement slide but now seemed struggling to build on the momentum back above the 1.4200 handle. 

The pair retreated from an intraday high level of 1.4223, over two-week tops, following today's mixed UK economic data. Data released on Wednesday showed UK manufacturing production contracted by 0.2% and industrial production recorded a lower than expected growth of 0.1% in February.

The disappointing production data, to a larger extent, was negated by a larger than expected shrinkage in the UK trade deficit, coming in at £10.20 billion as against previous month's £12.23 billion, and helped limit further losses.

Moreover, traders also seemed reluctant to place aggressive bets and preferred to wait on the sideline ahead of today's key releases - the latest US consumer inflation figures and minutes from the last FOMC meeting. Hence, the pair now seems more likely to oscillate in a narrow trading range and consolidate its recent strong gains of around 250-pips from last week's swing lows.

Technical levels to watch

Any subsequent retracement below 1.4175-70 area is likely to find support near the 1.4140-35 region, which if broken might drag the pair back towards the 1.4100 handle. On the flip side, the 1.4225-30 zone might continue to act as an immediate hurdle, above which the pair is likely to dart towards reclaiming the 1.4300 handle.