GBP/USD regains 1.2900 ahead of UK CPI

Having bottomed out at 1.2880 region, the GBP/USD pair now pushes further into the positive territory, taking the rate back above 1.29 handle.

GBP/USD eyes 5-DMA at 1.2913

Currently, GBP/USD trades +0.22% higher at fresh session tops of 1.2908, heading for a test of 5-DMA. The cable is seen consolidating near five-week troughs, although attempts gains above 1.29 handle amid broad based US dollar selling, as markets take profits off the table ahead of the inflation report from both the US and UK.

Markets now eagerly await the release of the UK CPI report, with the data likely to attract a lot of eyeballs as it will take into account the real impact of Brexit on the economy. Meanwhile, a host of US economic releases due will be also closely followed, with the US CPI and industrial production figures in the spotlight.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.2913 (5-DMA), above which 1.2977/1.3000 (10-DMA/ psychological levels) would be tested. On the flip side, support is seen at 1.2849 (Jul 11 low) below that at 1.2796 (multi-year low).