GBPUSD – British Pound Eyeing CPI Report For Next Move
This article is originally referred from TitanFX Forex News.
- The British Pound after trading as high as 1.3480 recently found sellers and traded lower against the US Dollar.
- A bullish trend line formed on the hourly chart of the GBPUSD pair acted as a support and protected the downside move.
- Today in the UK, the Consumer Price Index will be released by the National Statistics.
- The market is expecting a rise of 0.4% in the CPI in July 2016, compared with the last increase of 0.3%.
GBPUSD TECHNICAL ANALYSIS
The British Pound enjoyed a decent recovery recently against the US Dollar and traded as high as 1.3480 where the bulls got offers. The GBPUSD pair traded lower and found support near 1.3130.
There is a bullish trend line formed on the hourly chart of the GBPUSD pair, which played well and prevented any further losses. However, it looks like the sellers are attempting to clear it, and if they succeed, there is a chance of a move towards the 200 hourly simple moving average.
On the upside, the 100 hourly SMA can be considered as a resistance area for the GBPUSD pair.
UK CONSUMER PRICE INDEX
Later today in the UK, Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services will be released by the National Statistics.
The forecast is slated for a rise of 0.4% in the CPI in July 2016, compared with the same month a year ago. And in terms of the monthly change, the CPI is forecasted to increase by 0.1%.
Moreover, a few other figures will also be published like the Producer Price Index highlighting a monthly measurement of the price changes of goods produced by UK manufacturers.
Overall, there can be a lot of action during the London session, and the GBPUSD traders must be careful while trading around these important events.
US NET TIC FLOWS
Earlier in the US, the total Long-Term TIC (Treasury International Capital) Flows was released by the US Department of Treasury. It posted a reading of $41.1B in May 2016, compared with the last revised reading of $-67.4B. Moreover, the total Net TIC Flows came in at $-11.0B, compared with the last reading of $93.1B.
Original Source: TitanFX Forex News