GBP/USD is flat on Tuesday, as the pair trades in the mid-1.56 range. On the release front, British CPI edged above the forecast, posting a gain of 1.3%. In the US, the Producer Price Index posted a gain of 0.2%, beating expectations.
On Tuesday, the UK released a host of inflation indicators, led by CPI, the primary gauge of consumer inflation. There were no surprised, as all of the indicators met expectations. The index improved to 1.3%, just above the estimate of 1.2%, which was the reading last month. Although the increase was marginal, it ended a streak of three straight readings where CPI has weakened. The pound shrugged off the readings, and remains close to 14-month lows. Last week, the BoE Inflation Report was unexpectedly dovish, resulting in the pound tumbling over 100 points.
GBP/USD November 18 at 16:45 GMT
- GBP/USD 1.5649 H: 1.5679 L: 1.5631
GBP/USD Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.5392 | 1.5505 | 1.5644 | 1.5717 | 1.5864 | 1.6000 |
- GBP/USD is showing very little movement. The pair tested support at 1.5644 during the day.
- 1.5717 is the next resistance line.
- On the downside, 1.5644 remains fluid. Will the pair break below this line? 1.5505 is stronger.
- Current range: 1.5644 to 1.5717
Further levels in both directions:
- Below: 1.5644, 1.5505, 1.5392 and 1.5282
- Above: 1.5717, 1.5864, 1.6000, 1.6141 and 1.6263
OANDA’s Open Positions Ratio
GBP/USD ratio is almost unchanged on Tuesday, continuing the trend we have seen since the start of the week. This is consistent with the lack of activity displayed by GBP/USD. The ratio is pointing to a majority of long positions, indicative of trader bias towards the pound moving higher.
GBP/USD Fundamentals
- 9:30 British CPI. Estimate 1.2%. Actual 1.3%.
- 9:30 British PPI Input. Estimate -1.4%. Actual -1.5%.
- 9:30 British RPI. Estimate 2.3%. Actual 2.3%.
- 9:30 British Core CPI. Estimate 1.6%. Actual 1.5%.
- 9:30 British HPI. Estimate 12.1%. Actual 12.1%.
- 9:30 British PPI Output. Estimate -0.3%. Actual -0.2%.
- 13:30 US PPI. Estimate -0.1%. Actual +0.2%.
- 13:30 US Core PPI. Estimate 0.2%. Actual 0.4%.
- 15:00 US NAHB Housing Market Index. Estimate 55 points. Actual 58 points.
- 18:30 US FOMC Member Narayana Kocherlakota Speaks.
- 19:05 BoC Deputy Governor Agathe Cote Speaks.
- 21:00 US TIC Long-Term Purchases. Estimate 41.3B.
* Key releases are highlighted in bold
*All release times are GMT