GBP/USD pierces 1.4200 on mixed UK data

• Cable is retreating from earlier tops in the 1.4220 area.
• UK data came in mixed. Trade deficit narrowed more than expected.
• US CPI in March and the FOMC minutes should drive the mood later.

The Sterling has given away part of its earlier gains vs. the greenback and is now prompting GBP/USD to slip back to the 1.4200 neighbourhood.

GBP/USD gains faltered near 1.4220

Cable’s rally remains well and sound today amidst a broad-based softer tone around the greenback and despite mixed results from the UK docket.

In fact, UK’s Manufacturing Production contracted at a monthly 0.2% in February and Industrial Production expanded 0.1% inter-month during the same period, both prints coming in below initial estimates.

In addition, UK’s trade deficit shrunk to £10.20 billion, bettering prior surveys and down from January’s £12.23 billion deficit.

Later in the day, US inflation figures and the FOMC minutes are poised to drive the sentiment in the global markets and around the greenback.

GBP/USD levels to consider

As of writing, the pair is gaining 0.15% at 1.4197 facing the next hurdle at 1.4224 (high Apr.11) seconded by 1.4246 (high Mar.26) and finally 1.4280 (high Feb.2). On the flip side, a break below 1.4083 (10-day sma) would aim for 1.4072 (21-day sma) and then 1.3965 (low Apr.5).