The GBPUSD has moved lower in trading today after better-than-expected inflation data sent UK yields lower and the GBPUSD lower as well.
The UK CPI YoY came in at 3.9% which is still well above the 2% target but was much lower than the 4.3% estimate and 4.6% last month. The core came at 5.1% vs 5.6% estimate and 5.7% last month. Again still high but lower-than-expected.
Technically, the GBPUSD tumbled to a low of 1.26288 which did crack below the 100 bar MA on the 4-hour chart at 1.2636 (see blueline in the chart), but fell short of the low from Monday’s trading at 1.26279. A move below each is needed to increase the bearish bias for the pair going forward.
There is a swing area below between 1.2602 to 1.26137 (see red number circles). Getting below the area would also needed to step the price lower.
This article was written by Greg Michalowski at www.forexlive.com. Source