GBP/USD eyes 1.2200 post-UK CPI, eyes on May

The buying interest around the Sterling is now picking up pace vs. the greenback, pushing GBP/USD to fresh daily tops near 1.2200 the figure.

GBP/USD bid on data

The pair gained extra pace after UK’s inflation figures tracked by the CPI rose more then expected during December, with consumer prices rising at an annualized 1.6% and 0.5% inter-month vs. initial forecasts at 1.4% and 0.3%, respectively.

The offered bias in the greenback remains intact, lending extra support to the pair’s upside while market participants keep waiting for the speech by PM Theresa May.

According to The Telegraph, May’s speech could unveil her plans for a ‘clean Brexit’, including at the same time an exit from the single market and the customs union.

In the meantime, spot has managed to fill yesterday’s gap lower to the 1.1980 region, although it still navigates the area of 3-month lows around the 1.2200 handle.

Adding to the fragile perspective around GBP, speculative net shorts have climbed to fresh 4-week highs during the week ended on January 10, as shown by the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.99% at 1.2168 and a breakout of 1.2189 (high Jan.17) would aim for 1.2230 (20-day sma) and finally 1.2318 (high Jan.12). On the downside, the immediate support aligns at 1.1988 (low Jan.16) followed by 1.1450 (GBP ‘flash crash’ Oct.7).