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SpanishSterling Appreciates Ahead of U.K.’s Inflation data, 30+ PIP Volatility Likely in GBP Parity; July 20, 2022
U.K. Inflation Results
Today U.K. will come up with the Inflation data at 0600 GMT/1130 IST. This is considered the UK’s most important inflation data because it’s used as the central bank’s inflation target. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Here the average price of various goods and services are sampled and then compared to the sampling done a year earlier.
Let’s see how GBP has reacted during the previous data release:
June 22:
May 18:
Technical View:
GBP/USD:
- The sterling appreciates on Wednesday ahead of U.K.’s CPI data and jumps back above $1.2000 mark.
- Today pair made intraday high at $1.2031 and low at $1.1985 mark.
- A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $1.2050 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.2000 will check further supports.
| SUPPORTS | RESISTANCES |
| $1.2000 | $1.2050 |
| $1.1972 | $1.2076 |
| $1.1948 | $1.2094 |
| $1.1921 | $1.2126 |
| $1.1902 | $1.2162 |
Take a look and do trade wisely!
Good Luck
TP Global FX Research Team
With a decade of Forex Market insight, TP Global FX Research Team delivers you the Market Insight that boosts your Trading Skills