GBPUSD maintains its intraday high near 1.1900 due to positive UK inflation and a spotlight on US retail sales.

VOT Research Desk

Market Analytics and Considerations

• GBPUSD rises slightly as October UK inflation data show significant growth.
• UK’s CPI increases at 11.1% YoY, but Core CPI levels remain at 6.5%.
• The market’s mood is improving, which strengthens the upward impetus before US retail sales.
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Detailed Trend Analytic Report

GBPUSD increases bids to 1.1880 as investors of the pair applaud positive UK inflation data prints early on Wednesday. The most recent shift in market sentiment and the US Dollar’s decline prior to the important US Retail Sales report are two more factors keeping the Cable pair purchasers.

Consumer Price Index (CPI), the primary measure of inflation in the UK, increased by 11.1% YoY, exceeding expectations of 10.7% and previous readings of 10.1%, while Core CPI returned at 6.5%, exceeding expectations of 6.4%.

In addition to the British inflation figures, a shift in market sentiment favored GBPUSD buyers. The news that Russian-made rockets had been fired at Poland, killing two people, sparked the risk-off mood late on Tuesday.

The same thing sparked emergency meetings between the Group of Seven (G7) and the North Atlantic Treaty Organization (NATO), which favored the US Dollar (USD) due to its appeal as a safe haven. However, the most recent information reported by the Associated Press (AP) mentioned the possibility that Ukraine fired the missile while citing the findings of an unidentified US official. Subsequently, the hazard avoidance ebbed and the greenback turned around the early-day gains at the most recent.

Against this background, the US stock futures are back slightly positive, reversing the initial losses, while the US 10-year Treasury yields snap a two-day downtrend near 3.82 percent at the time this article is written.

The GBPUSD pair traders should pay attention to the US Retail Sales for October, which are anticipated to grow by 1.0% in comparison to the previous 0.0%, after observing the initial reaction to the UK inflation numbers. The US Dollar may show signs of recovery amid the recent rise in Treasury yields if the key consumer-centric data matches the optimistic forecasts.

Technical analysis

Despite the fact that GBPUSD buyers face challenges from overbought RSI conditions and a downward-sloping resistance line from June around 1.2030 at press time, successful trading beyond the 100-DMA level around 1.1650 keeps the bulls hopeful.

Key ADDITIONAL IMPORTANT LEVELS

Moving Averages Signals