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GBP/USD testing lows near 1.4660, UK data eyed

FXStreet (Mumbai) - GBP/USD fell to fresh session lows ahead of Europe open, stalling its recovery from new five year lows reached yesterday at 1.4563 levels as traders now gear up for much awaited UK CPI data for fresh incentives on the major.

GBP/USD capped by 1.47

The GBP/USD pair trades lower by -0.11% at 1.4660, retreating from fresh session lows of 1.4653 levels. The cable erased overnight gains and slid gradually in Asian trading as the USD bulls jumped back in to bids after a temporary retreat seen in the last US session.

The US dollar index which measures the relative strength of the greenback against a basket of six major currencies trades higher by 0.14% at 99.88, attempting another run towards 100 marker.

Moreover, the pound remains pressured versus the greenback as traders anticipate the annual rate of UK CPI inflation is expected to have remained steady at 0% in March. However, it’s also expected that the UK economy may be gripped by deflation as the effects of steep falls in energy and food prices early this year could peak in March.

Meanwhile, traders now shift their focus towards UK CPI data followed by US retail sales numbers for further momentum on the pair.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4692 (Today’s High) above which gains could be extended to 1.4727 (April 10 High) levels. On the flip side, support is seen at 1.4600 below which it could extend losses to 1.4563 (April 13 Low) levels.

GBP/USD might rise to 1.47 – FXStreet

FXStreet Editor and Analyst, Omkar Godbole, notes that GBP/USD sees a potential inverted head and shoulder formation, and might rise to 1.4700 if the pair sustains above 1.4645 levels.
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UK March CPI expected to remain at zero - Rabobank

Jane Foley, Senior Currency Strategist at Rabobank, expects UK’s CPI to remain at 0%yoy in March, but risks exist for a negative dip, and further add that in spite of the low CPI consumers or firms have refrained from adopting a deflationary mindset.
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