The increasing selling pressure around the greenback is now lifting GBP/USD to trade in session tops around the 1.3100 handle ahead of key UK CPI results.
GBP/USD attention to data, Brexit
It is all about USD weakness so far today. In fact, the buck plummeted after the revised ‘Trumpcare’ bill failed to gain support even to start a debate. The news sent the US Dollar Index to fresh YTD lows, in turn lending fresh legs to the rally in the risk-associated space.
However, GBP should remain cautious ahead of the publication of June’s inflation figures in the UK along with the start of the Brexit talks, which should be the key driver for the Sterling in the months to come.
Additionally, Governor Mark Carney is expected to speak at the presentation of the new £10 note at Winchester Cathedral at 1330 GMT.
In the meantime, Cable is advancing for the second straight week so far today and trading in levels last seen back in September 2016 in the 1.3100 neighbourhood.
GBP/USD levels to consider
As of writing the pair is up 0.34% at 1.3100 and a breakout of 1.3115 (2017 high Jul.14) would open the door to 1.3447 (high Sep.6 2016) and then 1.3481 (high Jul.15 2016). On the flip side, the next down barrier aligns at 1.2959 (10-day sma) followed by 1.2888 (21-day sma) and finally 1.2808 (low Jul.12).