By CountingPips.com
The British pound sterling has decreased against the US dollar in forex trading on Tuesday following today’s United Kingdom fundamental data releases. The British currency has reversed and overtaken the gains that were seen on Monday as slower inflation numbers and resurgent US dollar strength have weighed on the GBP/USD currency pair.
Consumer price data from the UK showed that on a monthly basis price inflation increased by 0.2 percent while on a year over year basis, prices rose by just 2.4 percent. Both the monthly and the yearly data were below market expectations of 0.4 percent and 2.6 percent, respectively. Producer price inflation also came in less than expected today with a 1.1 percent rise on a yearly basis compared to the market economist’s expectation of a 1.4 percent increase.
The GBP/USD currency pair has fallen from the approximate opening price of 1.5253 and is currently trading over 100 pips lower around 1.5115 area. Further downside action will possibly see support coming in around the 1.5100 level while the 1.5000 major psychological level could be within reach this week on more declines.
Coinciding with the British pound fall against the dollar today is US dollar strength against the other major currencies. The dollar on Monday took a breather from its recent gains against the other major currencies but has been back at it on Tuesday. The dollar has gained against the euro, pound sterling, Japanese yen, Swiss franc, Canadian dollar, Australian dollar and the New Zealand dollar at time of writing in the morning of the US trading session.
GBP/USD Forex weekly trading chart: This pair has turned around after starting the week off on a positive trend and could potentially close lower for a third consecutive week. The 1.5250 resistance level proved to be a barrier to the upside momentum on both Monday and Tuesday. We would have to see the 1.5100 support taken out before a run at 1.5000 (dark grey line).
Written by Zac Storella, CountingPips Forex Blog & Currency Pair Research
