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12 Feb 2013
Forex: GBP/USD testing the 1.5600 level after UK data
The GBP/USD has plunged Tuesday surrounding the tranche of economic data recently released in the United Kingdom during the European session. After bottoming out in the 1.5574 region, the pair has recovered slightly towards the 1.5597/98 mark, whilst still incurring a loss of -0.38% today.
“The recent GBP/USD pullback suggests that a broader bearish structure, subsequently triggered by break below the four-month range and multi-year bull-trendline from 2009 low at 1.3500, remains intact and keeps the downside in focus.” warns Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
In the United Kingdom, the Consumer Price Index (YoY) was reported at only +2.7% in January, against expectations of +2.8%. Moreover, the Consumer Price Index (MoM) came in at -0.5% in January, against estimates which called for only -0.4%. Core Consumer Price Index (YoY) gave a result of +2.3% in January, relative to +2.4% in the previous month. Moving along, the Producer Price Index – Output (YoY) n.s.a. (January) yielded a result of +2.0%, which was consistent with projections. Finally, the PPI Core Output (YoY) n.s.a. has grown +1.4% in January, matching estimates figures.
“The recent GBP/USD pullback suggests that a broader bearish structure, subsequently triggered by break below the four-month range and multi-year bull-trendline from 2009 low at 1.3500, remains intact and keeps the downside in focus.” warns Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
In the United Kingdom, the Consumer Price Index (YoY) was reported at only +2.7% in January, against expectations of +2.8%. Moreover, the Consumer Price Index (MoM) came in at -0.5% in January, against estimates which called for only -0.4%. Core Consumer Price Index (YoY) gave a result of +2.3% in January, relative to +2.4% in the previous month. Moving along, the Producer Price Index – Output (YoY) n.s.a. (January) yielded a result of +2.0%, which was consistent with projections. Finally, the PPI Core Output (YoY) n.s.a. has grown +1.4% in January, matching estimates figures.