FXStreet (Edinburgh) – The sterling’s upside now seems to have lost some momentum, prompting GBP/USD to deflate to the 1.4300 neighbourhood ahead of the NA open.
GBP/USD favoured by UK data, risk
The better sentiment around the risk appetite in spite of the disappointing Chinese results has been supportive of the rally not only in GBP but also in the rest of the risk-associated assets.
Furthermore, higher-than-expected consumer prices in the UK economy during last month have also collaborated with the increasing buying interest surrounding the British pound, which has managed to stab the boundaries of 1.4350 in the wake of the releases.
GBP/USD key levels
The pair is now up 0.48% at 1.4309 and a break above 1.4464 (downtrend from 1.5232) would open the door to 1.4596 (20-day sma) and finally 1.4947 (high Dec.24). On the flip side, the immediate support lines up at 1.4233 (low Jan.18) ahead of 1.4230 (monthly low Apr.2010) and then 1.4049 (monthly lows Jan.2010).
(Market News Provided by FXstreet)