FXStreet (Mumbai) – The bid tone on the US dollar continues to strengthen in the European morning, pressuring GBP/USD towards the mid-point of 1.51 handle, as markets now await the UK CPI report for fresh cues.
GBP/USD trades around 10-DMA
The GBP/USD pair trades -0.30% lower at 1.5160, miring close to fresh session lows struck at 1.5156 in last hours. The minor recovery seen in the GBP/USD ran through fresh offers once again near hourly 200-SMA located at 1.5181, knocking-off the major to session lows.
The rising demand for the greenback, with risk-on trades making a solid comeback on rebounding European stocks, continues to weigh on the cable. The UK FTSE rockets 1.72% while the German DAX rallies +1.36%.
Meanwhile, focus now shifts towards the UK CPI report due out in less than an hour, with the headline CPI figure likely to tick higher to 0.2% in October, while the y/y change is projected to come out at 0.0%.
Moving on, the major will continue to track the broader market sentiment ahead of the US inflation data scheduled for release later in the day.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5181 (1h 200-SMA), above which 1.5200/04 (round number/ daily pivot) would be tested. On the flip side, support is seen at 1.5134 (daily S3) below which it could extend losses to 1.5112 (Nov 11 Low).
(Market News Provided by FXstreet)