19 Aug 2014
GBP/USD edges even lower after US data
FXStreet (Córdoba) - The GBP/USD stretched to yet another 4-month low at the beginning of the American session as the greenback strengthened after the release of US inflation and housing data.
Annual US consumer price index grew by 2.0% for the headline and 1.9% for the core in July, matching market's expectations. On a strong note, US housing starts rose 15.7% to 1.093 million in July versus 7.6% forecasted, reaching the highest level in 8 months and indicating a pick up in building.
The GBP/USD, that was underperforming in the wake of UK CPI downside surprise, fell to a fresh 4-month low of 1.6622 in recent dealings.
GBP/USD technical levels
In terms of technical levels, the Cable could find next supports at 1.6602/00 (Apr 8 low/psychological level), 1.6564 (Apr 7 low) and 1.6548 (Apr 4 low). On the flip side, resistances are now seen at 1.6667 (200-day SMA), 1.6700 (psychological level) and 1.6727 (Aug 19 high).
Annual US consumer price index grew by 2.0% for the headline and 1.9% for the core in July, matching market's expectations. On a strong note, US housing starts rose 15.7% to 1.093 million in July versus 7.6% forecasted, reaching the highest level in 8 months and indicating a pick up in building.
The GBP/USD, that was underperforming in the wake of UK CPI downside surprise, fell to a fresh 4-month low of 1.6622 in recent dealings.
GBP/USD technical levels
In terms of technical levels, the Cable could find next supports at 1.6602/00 (Apr 8 low/psychological level), 1.6564 (Apr 7 low) and 1.6548 (Apr 4 low). On the flip side, resistances are now seen at 1.6667 (200-day SMA), 1.6700 (psychological level) and 1.6727 (Aug 19 high).