GBP/USD fades spike above 1.25

The GBP/USD pair ran into offers at 1.2530 and is now trading marginally lower on the day around 1.2490.

Eyes UK CPI

The focus today is on the UK data, which is expected to show the cost of living as represented by the consumer price index (CPI) ticked higher to 1.1% y/y in Oct from the previous month’s print of 1.0%. The core figure is seen slowing to 1.4% from 1.5%.

Later in the day, comments from Fed’s Rosengren could influence the overall demand for the US dollars.

The retreat from the session high 1.2530 could be due to the recovery in the treasury yields.

GBP/USD Technical Levels

A sustained break above 1.2512 (5-DMA) would open doors for a revisit to Monday’s high of 1.2597, above which the 50-DMA level of 1.2640 could be put to test. On the other hand, a breakdown of support at 1.2463 (10-DMA) would shift risk in favor of a drop to 1.24 and 1.2378 (Nov 10 low).