Sterling Tests Key Levels Ahead Of CPI Data

• 15 Jan 2018

GBP/USD

The Pound has enjoyed significant strength over the U.S. Dollar in recent months, with the pair sustaining a bullish run since the beginning of November. Positive moves politically have provided support for the Pound which has broken a resistance area at 1.357. Momentum indicators suggest that the bullish momentum may come to an end having reached overbought conditions.

GBP/CHF

The GBP/CHF pair has touched the 1.328 price level which represents a fairly significant resistance line for the pair. Each time that the pair has previously reached this price level (except one occasion) it has rejected and continued lower. Although momentum indicators remain in positive territory, there are signs that buyers may not have the conviction to push prices higher.

GBP/CAD

The GBP/CAD pair is testing the 1.71 price level having broken the 20-period EMA. Despite the break, momentum indicators are mixed; with RSI stalled in positive territory and MACD dropping into negative territory. Fundamental factors will likely impact the near-term direction for the pair.

GBP/AUD

The GBP/AUD pair has reached a resistance area at the 1.735 price level and in today’s session, has resulted in a pullback to test the 20-period EMA. Momentum indicators confirm bearish sentiment, however, fundamental factors will play a role in price action today.