GBP/USD - 1.3000 is Key
We're nearing an important driver for the USD with tomorrow's release of US CPI and expectations are high, with markets looking for headline CPI to move down to 2.6% from a prior read of 2.9%. For Core CPI, the expectation is for the same 3.2% that printed last month and that's where there could be scope for some additional USD-weakness should the data print below that level.
For USD-weakness scenarios, GBP/USD remains of interest as the pullback over the past few weeks has been less pronounced than what's shown in EUR/USD and the trend that was driving ahead of that was even stronger in Cable.
Notably there hasn't yet been a support test at prior resistance of 1.3000, which has been a big level for the pair for the past few years. Sitting overhead are two points of resistance around the 1.3150 level and this is the zone that bulls will need to drive through to exhibit control of near-term momentum. - js
For USD-weakness scenarios, GBP/USD remains of interest as the pullback over the past few weeks has been less pronounced than what's shown in EUR/USD and the trend that was driving ahead of that was even stronger in Cable.
Notably there hasn't yet been a support test at prior resistance of 1.3000, which has been a big level for the pair for the past few years. Sitting overhead are two points of resistance around the 1.3150 level and this is the zone that bulls will need to drive through to exhibit control of near-term momentum. - js
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