Forex: GBP/USD erases gains, down to 1.5080

FXstreet.com (Barcelona) - Expectations ahead of the US housing data sent the GBP/USD to as high as 1.5145, but then the market couldn’t hold above the opening price of 1.5108 and eased below the psychological level at 1.5100 during the US session. The 1.5075/80 zone is holding against a possible extension of daily losses.

US Building Permits rose from 0.904M to 0.946M in February, beating consensus of 0.925M. January data was revised lower, from 0.925M. US Housing Starts also improved more than expected, from 0.910M (revised from 0.89M) to 0.917M. Market consensus was at 0.915M.

UK CPI rose from 2.7% to 2.8% in February, with a monthly rise of 0.7%. Core data stayed unchanged at 2.3% (YoY). PPI input rose 3.2% (+1.9% consensus) and output rose 0.8% (consensus of +0.3%). Core output PPI rose 0.3% (MoM), with consensus at +0.2%.

Retail Prices in the UK were at +0.7% (consensus of +0.8%) in February, with easing YoY data from 3.3% to 3.2%. UK DCLG fell from 3.3% to 2.2% (consensus of 2.6%) in January.

“The GBP/USD currency pair is consolidating near the top of the first impulse. We think today the price may leave this consolidation channel downwards; the target is at 1.4960”, wrote Roboforex.com analyst Igor Sayadov, expecting then another ascending wave to break the top of the first impulse and then continue consolidating.