GBP/USD: Aggressively sold-off to 1.32 handle, UK CPI in focus

The ongoing recovery from around 1.3150 region lost legs ahead of 1.33 handle in the last NY session, knocking-off GBP/USD back towards 1.32 handle.

GBP/USD moves past BOE’s status quo

Currently, GBP/USD now drops -0.30% to 1.3216, having bounced-off session lows struck just ahead of 1.32 barrier. The cable ran through fresh supply over the last hour after risk conditions deteriorated somewhat amid mixed equities and lower commodities’ prices, weighing on the higher-yielding currency GBP.

However, the downfall appears capped as attention now turns towards the UK CPI figures, with markets expecting the consumer prices to tick higher in June. The CPI is expected to have risen to 0.4% over the year in June from 0.3% in May, matching March’s highest level since December 2014.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3249 (5-DMA), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3205 (daily low) below that at 1.3176/75 (20-DMA/ daily S1).