(1 Hour post event )
(End of Day post event)
10/17/2017 08:30:00 GMT
September 2017 U.K. Consumer Price Index (CPI)
GBP/USD 5-Minute Chart
The U.K. Consumer Price Index (CPI) climbed an annualized 3.0% in September to mark the fastest pace of growth since 2012, while the core rate of inflation held steady at 2.7% per annum for the second-month. A deeper look at the report showed prices for clothing & footwear advanced 3.9% on a monthly basis, with food prices also increasing 0.8%, while transportation costs narrowed 1.3% after rising 1.0% in August.
The British Pound struggled to hold its ground following the batch of in-line prints, with GBP/USD slipping below the 1.3200 handle during the North American trade to end the day at 1.3189. Interested in trading the U.K. CPI report but don’t have a plan? Download and review the DailyFX Advanced Guide for Trading the News for FREE to learn our 8 step strategy.
GBP/USD Daily Chart
- GBP/USD remains confined by the monthly opening range, but the broader outlook remains constructive especially as both price & the Relative Strength Index (RSI) break out of the bearish formations carried over from September.
- Lack of momentum to test the October-low (1.3027) may spur a test of the November-high (1.3321), with a closing price above the Fibonacci overlap around 1.3300 (100% expansion) to 1.3320 (38.2% retracement) raising the risk for a move back towards 1.3370 (78.6% expansion), which sits just below the October-high (1.3402).
- However, break/close of the monthly-low (1.3040) brings the Fibonacci overlap around 1.2950 (23.6% expansion) to 1.2960 (78.6% retracement) back on the radar, with the next downside region of interest coming in around 1.2800 (50% expansion) to 1.1860 (61.8% retracement).
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— Written by David Song, Currency Analyst
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