The sterling is losing further ground vs. the greenback at the beginning of the week, sending GBP/USD to test daily lows in the 1.4370 region.
GBP/USD focus on UK’s CPI
The pair is trading on the defensive along with the generalized offered tone in the riskier assets and against a backdrop of USD-buying across the board. It seems spot could not sustain last week’s upside to fresh peaks beyond the 1.4500 mark, triggering the ongoing correction ahead of tomorrow’s key inflation figures in the UK economy.
In fact, consensus expects UK’s consumer prices to have risen at an annual pace of 0.4% during February, a tad higher than January’s 0.3% annual advance. Further releases will see Public Sector Net Borrowing and Producer Prices.
GBP/USD levels to consider
As of writing the pair is retreating 0.69% at 1.4374 facing the next support at 1.4314 (55-day sma) followed by 1.4249 (50% Fibo of 1.4670-1.3833) and finally 1.4200 (20-day sma). On the flip side, a break above 1.4502 (high Mar.17) would expose 1.4670 (high Feb.4) and finally 1.4948 (high Dec.25 2015).
(Market News Provided by FXstreet)