GBP/USD holds above 1.5100
On Tuesday GBP/USD is consolidating in the $1.5145/5045 range. The cable is sitting at $1.5100 following the release of a lower-than-expected UK CPI (2.9% y/y vs. forecast 3.0% and previous 2.7%).
Support for the cable is seen at $1.5030/5000 (Friday’s low, 23.6% Fibo from the recent decline). Slide below will mean a return to the bearish channel. Next support will be seen at $1.4815.
However, the $1.5000 level looks quite resilient for now. Last week the pair formed a strong bullish candle, supported by the dovish Ben Bernanke comments. Watch the next Bernanke’s speech on Wednesday for new market-moving signals. Resistance is seen at $1.5150, $1.5200 and $1.5220.
Chart. Daily GBP/USD