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GBP/USD is getting prepared for weak CPI

FXStreet (Moscow) - GBP/USD came under pressure during early European session, currently reaching 1.6050 area.

The market is jittery - today the pair will get first key report of the week out of the UK. The CPI data is in focus, as low price pressure leaves the BOE more space for delaying the first rate hike. Given the series of reports indicating the slower pace of growth, we may see lower-than-expected inflation. In this case the market may push the pound down , as it starts pricing-in a prolonged period of ultra-low rates. The initial target to the downside may be located at 1.6048, followed by 1.6011.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6088, with support below at 1.6048, followed by 1.6011 and 1.5971 with resistance above at 1.6197, followed by 1.6275 and 1.6321. Hourly Moving Averages are mixed, with the 200SMA bearish at 1.6094, and the daily 20EMA bearish at 1.6196. Hourly RSI is bearish at 47.

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