Sterling Trades Slightly Lower Ahead of U.K.’s Inflation Results, 30+ PIP Volatility Likely; April 21, 2021
U.K. CPI Results
Today U.K. has scheduled to release CPI data at 0600 GMT/1130 IST. Along with CPI data, U.K. will release core CPI, PPI input, PPI output and RPI (Retail Price Index) data. 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. In the actual data releases higher than forecasted, it will be beneficial to the GBP.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The sterling trades marginally lower ahead of U.K.’s Inflation Results. The pair made intraday high at $1.3949 and low at $1.3925. Today a day and H1 chart with triple EMA suggests bullish trend for the time being. A sustained close above $1.3952 requires for the upside rally. Alternatively, a consistent close below $1.3920 will check further key supports.
Key Resistances: $1.3952, $1.3970, $1.4008, $1.4026, $1.4061
Key Supports: $1.3920, $1.3900, $1.3876, $1.3854, $1.3815
Take a look and do trade wisely!