GBP/USD sees aggressive cross-driven selling ahead of CPI

The bears appear to guard the 1.25 barrier, rejecting GBP/USD’s every attempt to take out the last, as we progress towards the release of the UK CPI report.

GBP/USD trades below 10-DMA at 1.2488

The major came under aggressive selling pressure on the back of profit-taking, after the bulls failed to surpassed 1.25 handle, despite persisting broad based US dollar weakness and tumbling treasury yields, which usually makes the pound more attractive as an alternative higher yielding asset. Meanwhile, the cable is last seen exchanging hands at 1.2445 levels, down -0.41%, meandering near fresh session lows struck at 1.2441.

The latest leg lower in the GBP/USD pair is mainly driven by a sharp rally in the EUR/GBP cross after the euro rebounded sharply against the greenback over the last hour. Focus now remains on the UK CPI data due out shortly ahead  of the BOE inflation hearing report and US retail sales data due later on Tuesday.

GBP/USD Levels to consider            

At 1.2473, the pair finds immediate resistances placed at 1.2500 (zero figure), 1.2529 (daily high) and 1.2550 (psychological levels). While supports are lined up at 1.2400 (round figure) and 1.2373 (Nov 10 low) and below that at 1.2349 (Nov 9 low).

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