GBPUSD – UK CPI data in focus
Cable ticked higher on Tuesday after strong fall on Monday which generated bearish signal on close below 1.3354 (Fibo 38.2% of 1.3038/1.3549 ascend).
Pound received support from political news on Tuesday, but focus is at UK inflation data. CPI is forecasted at 3.0% in Nov, unchanged from the previous month, but weaker than expected release could increase pressure on sterling and risk retest of 1.3330/19 (lows of Monday / 07 Dec) and psychological 1.3300 support (also daily Kijun-sen), break of which will be strong bearish signal.
Bullish scenario requires inflation data above forecast and lift above 10SMA /Monday’s high (1.3430) for fresh bullish signal.
Res: 1.3363; 1.3400; 1.3430; 1.3445
Sup: 1.3330; 1.3300; 1.3254; 1.3233