GBP/USD moves higher through 1.3200 ahead of UK CPI

The Sterling is trading on a better footing on Tuesday, now lifting GBP/USD back above the 1.3200 handle, or daily highs.

GBP/USD bid ahead of data

A bout of renewed selling pressure around the greenback is allowing Cable to return to the 1.3200 neighbourhood ahead of key inflation data for the month of August.

Market consensus expects headline consumer prices to have risen at an annualized 2.8%, while prices stripping food and energy costs are seen rising 2.3% over the last twelve months.

In the meantime, the pair is recovering ground lost following yesterday’s pullback, while decent support seems to have emerged around the 1.3165/60 band for the time being.

GBP is expected to remain in centre stage this week, as key UK labour market figures are to be published tomorrow ahead of the BoE meeting due on Thursday.

GBP/USD levels to consider

As of writing the pair is up 0.31% at 1.3205 and a break above 1.3225 (high Sep.8) would open the door to 1.3266 (2017 high Aug.3) and finally 1.3447 (high Sep.6 2016). On the flip side, the immediate support lines up at 1.3161 (low Sep.11) seconded by 1.3049 (10-day sma) and finally 1.2992 (55-day sma).