GBP/USD approaches 1.2900 post-CPI, awaits key vote
- Cable remains bid following in-line CPI figures.
- UK’s CPI rose 0.2% MoM and 2.1% on a yearly view.
- PM T.May is seen passing today’s no-confidence motion.
The Sterling keeps the bid tone unaltered so far this week and is now motivating GBP/USD to move closer to the critical 1.2900 the figure.
GBP/USD looks to no-confidence vote
Following yesterday’s volatile session, Cable has now recovered the composure and keeps moving higher towards another potential visit to the 1.2900 barrier.
The British Pound remained apathetic after UK’s inflation figures tracked by the CPI for the month of December showed consumer prices rose at a monthly 0.2% and 2.1% from a year earlier.
In the meantime, all the attention around the Sterling stays focused on today’s no-confidence motion sponsored by Labor Party leader J.Corbyn in the wake of the catastrophic defeat of PM Theresa May in the House of Commons on Tuesday.
In this regard, consensus expects May to pass today’s vote, which should buy her time to come up with a ‘Plan B’ next Monday and start fresh cross-party talks in the next days.
GBP/USD levels to consider
As of writing, the pair is gaining 0.08% at 1.2869 and faces the next hurdle at 1.2929 (2019 high Jan.14) seconded by 1.3072 (high Nov.14 2018) and then 1.3113 (200-day SMA). On the other hand, a breach of 1.2775 (55-day SMA) would expose 1.2712 (21-day SMA) and finally 1.2668 (low Jan.15).