GBP/USD retraces gains, dips back below 1.4300

GBP/USD was rejected from the 1.4345 zone and retraced most of its UK CPI-inspired gains over the last hours, as the greenback strengthened versus its European peers.

GBP/USD failed to hold above the 1.43 level and slid toward the 1.4250 area where the 20-hour SMA offered support. At time of writing, the pair was trading at 1.4265, still 0.21% above its opening price.

The pound was supported by better-than-expected UK CPI data. On yearly basis, CPI rose 0.5% in March, its largest increase since November 2014 and above expectations of a 0.4% gain. Meanwhile, core CPI rose 1.5%, the most since August 2014, and also above estimates of 1.3%.

GBP/USD technical levels

In terms of technical levels, immediate resistances could be found at 1.4370 (Apr 1 high), 1.4458 (Mar 30 high) and 1.4495 (100-day SMA). On the flip side, supports are seen at 1.4225 (Apr 12 low), 1.4105/00 (Apr 11 low/psychological level), 1.4040 (Apr 8 low) and 1.4004 (Apr 4 low).