GBP/USD downside risks target 1.5135

By FXStreet FXStreet (Guatemala) – GBP/USD is currently trading at 1.5203 with a high of 1.5240 and a low of 1.5155.

The GBP/USD has been a little choppy in a tight range around the 1.52 handle while the UK and US data was equally mixed, driving the price. UK core CPI was up 0.1%Y/Y for October beating expectations of 1.0% while CPI remained -0.1% and inline with expectations for the same time period.

PPI’s were a disaster -12.1% vs -12.0% but slightly better than the -13.4% previous while core was 0.3% vs 0.4% expected. US CPI was in line core at 1.9% Y/Y and 0.2% vs 0.1% expected and non core. All in all, markets are looking for the BoE to hike in the first period of 2016 and the FOMC to decide to hike rates in December, leaving the downside exposed.

GBP/USD levels

In the 4 hours chart, the technical indicators present a neutral stance, as noted by Valeria Bednarik, chief analyst at FXStreet who explained that with only a downward acceleration below 1.5160 would suggest a bearish continuation for this Tuesday.

“Below 1.5135/33 (October low) should be enough to refocus attention on the downside towards 1.5020/00 and below 1.5000 will target …read more

Source:: FX Street