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GBP/USD tests 1.5675 after US inflation

FXStreet (San Francisco) - The pound extended its rejection of the 1.5700 area against the US Dollar following a better than expected US CPI data; however, the pair bounced off at 1.5675 where it found buying interest that sent it back to daily highs.

The US CPI rose to 1.7% YoY in October, above 1.6% expected; The Ex food and energy inflation rose to 1.8% YoY, above the 1.6% awaited. Jobless claims was up to 291K, well above 285K expected; and even worst, the previous week was revised 3K up to 293K.

Currently, GBP/USD is trading at 1.5689, up 0.10% on the day, having posted a daily high at 1.5710 and low at 1.5632. GBP/USD spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.

Earlier in the day, the GBP/USD was lifted by a good UK retail sales data that fueled the pair to recover from 14-month lows to a intraday high of 1.5705.

GBP/USD levels

Above 1.5700, the GBP/USD will find next resistances at 1.5710, 1.5725 and 1.5735. To the downside, supports are at 1.5675, 1.5655 and 1.5630.

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