The Sterling is pushing higher at the beginning of the week, now lifting GBP/USD to the area of session tops beyond 1.2900 the figure.
GBP/USD attention to UK’s CPI
After bottoming out near 1.2840 on Friday, Cable managed to regain the 1.2900 handle and advance to daily highs around 1.2910 ahead of the opening bell in Europe.
In the meantime, market participants seem to have left behind last week’s poor data from the UK’s Industrial and Manufacturing sectors as well as the steady stance from the Bank of England at its last meeting.
While the broad-based USD-weakness appears to extend into the European session and thus support the pair, GBP should stay under the microscope in light of UK’s inflation figures due tomorrow. Consensus among investors sees consumer prices to have risen at an annualized 2.6% during last month.
Additionally, GBP speculative net shorts have receded to levels last seen in late June 2016 in the week to May 9, according to the latest CFTC report.
GBP/USD levels to consider
As of writing the pair is up 0.15% at 1.2908 and a surpass of 1.2953 (high May 11) would open the door to 1.2989 (high May 10) and finally 1.2992 (2017 high May 8). On the flip side, the immediate support aligns at 1.2842 (low May 12) followed by 1.2829 (low May 4) and then 1.2758 (low Apr.21).