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GBP/USD is on the move; 1.6200 support in sight

FXStreet (Moscow) - GBP/USD is consolidating Monday losses in a tight range limited by Asian high at 1.6249 and low at 1.6215 ahead UK CPI numbers published later during the day.

Will inflation hit pound?

Cable is volatile nowadays. Apart from Scottish referendum that is regarded as the major risk event of the week, there is a host of UK inflation data published later today during European hours. CPI inflation numbers are expected to be slightly lower in August (1.5% y/y against 1.6% y/y in July). It means that the inflation is moving away from BOE target. From the longer-term perspective this development could increase the downside pressure on the British currency. Obviously, investors have been too optimistic pricing in early BoE rate hike, thus now they may start to adjust the expectations. From the technical point of view, key intraday support is seen at psychologically important 1.6200. If it is broken on weak CPI numbers, the downside may be expected towards 1.6185. The upside is likely to be limited by 1.6270/80.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6245, with support below at 1.6209, 1.6186 and 1.6150 with resistance above at 1.6268, 1.6304, and 1.6327. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.6237, and the daily 20EMA bearish at 1.6413. Hourly RSI is bearish at 45.

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