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GBP/USD crashed below 1.6000 after dismal CPI numbers

FXStreet (Moscow) - GBP/USD dipped to 1.5981 after UK CPI release after having traded at 1.6030 before data

The pound was nervous this morning, as market was waiting for the inflation data. The CPI data came out worse than expected printing 0.1% vs 0.2% m/m, 1.4% y/y. The Core Index was 1.5% vs 1.8% forecasted, meaning the BOE will have plenty of time ahead to keep the monetary policy intact. The less chances for the rate hike in Q1, 2015 we have, the weaker the pound. The pair moved well below 1.600 pivot post the release and the next target may be found at 1.5950.

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 1.6093, and the daily 20EMA bearish at 1.6196. Hourly RSI is bearish at 36.

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