12 Jan 2015
GBP/USD posts fresh daily lows; hovers around 1.51 mark
FXStreet (Mumbai) - Cable slipped in the European morning, as the demand for the US dollar rose amid lack of further incentives for the currency pair in the day ahead.
The GBP/USD pair traded at 1.5108 levels, down -0.33% on the day, having posted fresh day’s lows at 1.5099 levels, breaking below the 1.51 mark. The cable gave away previous gains and edged lower as traders remained wary ahead of a muted UK price pressures print tomorrow. Markets expect UK’s consumer price inflation to have slowed to 0.7% in December, diving further after hitting the lowest rate since September 2002 in the previous month. The expectations of a fall below 1.0% in the CPI rate will call for Bank of England (BoE) Governor Mark Carney to write an open letter to Chancellor George Osborne explaining why this has occurred.
Moreover, the fall in the GBP/USD pair is also exacerbated as the US dollar regained strength against its major peers.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5170 above which gains could be extended to 1.52 levels. On the flip side, support is seen at 1.5074 (Jan 9 Low), below which it could extend losses to 1.5020 levels.
The GBP/USD pair traded at 1.5108 levels, down -0.33% on the day, having posted fresh day’s lows at 1.5099 levels, breaking below the 1.51 mark. The cable gave away previous gains and edged lower as traders remained wary ahead of a muted UK price pressures print tomorrow. Markets expect UK’s consumer price inflation to have slowed to 0.7% in December, diving further after hitting the lowest rate since September 2002 in the previous month. The expectations of a fall below 1.0% in the CPI rate will call for Bank of England (BoE) Governor Mark Carney to write an open letter to Chancellor George Osborne explaining why this has occurred.
Moreover, the fall in the GBP/USD pair is also exacerbated as the US dollar regained strength against its major peers.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5170 above which gains could be extended to 1.52 levels. On the flip side, support is seen at 1.5074 (Jan 9 Low), below which it could extend losses to 1.5020 levels.