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GBP/USD trims some gains, sees rejection from 1.2500 after UK CPI decline

  • GBP/USD is experiencing a downward pullback on Wednesday.
  • UK data was weaker than expected, capping gains for the Pound.
  • UK retail sales will be released on Friday.

GBP/USD is pulling back after touching the 1.2500 area and retesting the 1.2400 area after UK data was not as expected and US numbers were mixed.

The UK core Consumer Price Index (CPI) for the year to October stood at 5.7%, slightly below the 5.8% expected and further away from the previous month’s reading of 6.1%.

The UK consumer price index for the same period also beat expectations, at 6.1% versus 6.4% forecast and down from 8.9% previously.

In the United States, the underlying Producer Price Index (PPI) for the annualized period in October was 2.4%, below the 2.7% forecast. Meanwhile, US retail sales also fell, but remained above expectations.

US retail sales for October fell a slight 0.1%, above the forecast of -0.3%, but still below the previous month’s 0.9%, which was revised up from 0.7%.

UK Retail Sales will be released on Friday, and sterling traders will be keeping an eye on the latter part of the week.

GBP/USD Technical Outlook

The GBP/USD pair is getting stuck at the 200-day moving average (SMA) after facing strong rejection from the 1.2500 area, and the pair’s bullish bounce from 1.2200 is quickly coming under pressure.

The bids are being supported by a bullish break of the descending trend line drawn from the July peak near 1.3140, as well as the 50-day SMA currently rotating out of a descending pattern near 1.2260.

The medium-term floor for any bearish pullback will be the October bid lows, just above the 1.2000 level, as well as a rough support zone near 1.2100.

GBP/USD Daily Chart

GBP/USD Technical Levels


Latest price today 1.2423
Today Daily Change -0.0079
Today’s daily variation -0.63
Today’s daily opening 1.2502
daily SMA20 1.2221
daily SMA50 1,226
SMA100 daily 1.2516
SMA200 daily 1.2439
Previous daily high 1.2506
Previous daily low 1.2266
Previous weekly high 1.2429
Previous weekly low 1.2187
Previous Monthly High 1.2337
Previous monthly low 1.2037
Daily Fibonacci 38.2 1.2414
Fibonacci 61.8% daily 1.2357
Daily Pivot Point S1 1.2343
Daily Pivot Point S2 1.2184
Daily Pivot Point S3 1.2102
Daily Pivot Point R1 1.2583
Daily Pivot Point R2 1.2665
Daily Pivot Point R3 1.2824

Source: Fx Street

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