GBP/USD: limited downside above 1.5155 – UOB

By FXStreet FXStreet (Barcelona) – Analysts at UOB noted the conditions surrounding GBP/USD.

Key Quotes:

“The annual rate of CPI continued to remain at a record low of -0.1% and in its longest run at below zero. Meanwhile, m/m CPI rose above zero by 0.1%.

The accompanying producer price report also showed a lack of price pressures in the pipeline, with the output PPI flat on the month and down -1.3% y/y. With inflationary pressures still low in the UK, there is little pressure on the BoE to tighten monetary policy any time soon.

Mixed indicators continue to suggest range trading albeit with a positive bias.

Any pull-back from here is unlikely to threaten yesterday’s low at 1.5155 but a sustained move above 1.5250/55 appears unlikely as well.

Key resistance at 1.5320 but waning momentum suggests limited downside risk for now.”
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Source:: FX Street