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GBP/USD dips to lows near 1.5160 ahead of UK CPI

FXStreet (Mumbai) - The bid tone on the US dollar continues to strengthen in the European morning, pressuring GBP/USD towards the mid-point of 1.51 handle, as markets now await the UK CPI report for fresh cues.

GBP/USD trades around 10-DMA

The GBP/USD pair trades -0.30% lower at 1.5160, miring close to fresh session lows struck at 1.5156 in last hours. The minor recovery seen in the GBP/USD ran through fresh offers once again near hourly 200-SMA located at 1.5181, knocking-off the major to session lows.

The rising demand for the greenback, with risk-on trades making a solid comeback on rebounding European stocks, continues to weigh on the cable. The UK FTSE rockets 1.72% while the German DAX rallies +1.36%.

Meanwhile, focus now shifts towards the UK CPI report due out in less than an hour, with the headline CPI figure likely to tick higher to 0.2% in October, while the y/y change is projected to come out at 0.0%.

Moving on, the major will continue to track the broader market sentiment ahead of the US inflation data scheduled for release later in the day.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.5181 (1h 200-SMA), above which 1.5200/04 (round number/ daily pivot) would be tested. On the flip side, support is seen at 1.5134 (daily S3) below which it could extend losses to 1.5112 (Nov 11 Low).

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