15 Apr 2014
GBP/USD breaches 1.6700
FXStreet (Edinburgh) - Increasing selling pressure around the sterling is now dragging the GBP/USD to test fresh multi-day lows in the 1.6690/85 region.
GBP/USD focus on CPI data
The sterling is extending its weekly decline, coming down from last week’s tops in the area of 1.6820 amidst a renewed risk aversion scenario. Ahead in the day, UK inflation figures are due, with prior surveys expecting consumer prices to rise 1.6% YoY in March, down from February’s 1.6%. “The main economic release in the European trading session today will be the UK CPI report for March which should reveal that inflation pressures continue to ease helping to dampen BoE rate hike expectations ahead and further potential pound upside in the near-term”, noted Lee Hardman, Currency Analyst at BTMU.
GBP/USD levels to watch
As of writing the pair is losing 0.18% at 1.6697 and a breakdown of 1.6638 (30-d MA) would open the door to 1.6605 (low Apr.8) and finally 1.6600 (psychological level). On the upside, the initial hurdle aligns at 1.6730 (high Apr.15) ahead of 1.6745 (high Apr.14) and then 1.6787 (high Apr.11).
GBP/USD focus on CPI data
The sterling is extending its weekly decline, coming down from last week’s tops in the area of 1.6820 amidst a renewed risk aversion scenario. Ahead in the day, UK inflation figures are due, with prior surveys expecting consumer prices to rise 1.6% YoY in March, down from February’s 1.6%. “The main economic release in the European trading session today will be the UK CPI report for March which should reveal that inflation pressures continue to ease helping to dampen BoE rate hike expectations ahead and further potential pound upside in the near-term”, noted Lee Hardman, Currency Analyst at BTMU.
GBP/USD levels to watch
As of writing the pair is losing 0.18% at 1.6697 and a breakdown of 1.6638 (30-d MA) would open the door to 1.6605 (low Apr.8) and finally 1.6600 (psychological level). On the upside, the initial hurdle aligns at 1.6730 (high Apr.15) ahead of 1.6745 (high Apr.14) and then 1.6787 (high Apr.11).