GBP/USD clinches 1.2960 on CPI

The Sterling is now following the rest of the risk-associated assets on their way up on Tuesday, sending GBP/USD to test session highs near 1.2970.

GBP/USD bid on USD drop, data

The pair found extra buying pressure after UK’s consumer prices have surpassed expectations during July, rising at an annualized 0.6% while contracting 0.1% on a monthly basis.

Spot keeps the upbeat sentiment intact today in response to a renewed and strong selling pressure around the greenback, which has prompted GBP to bounce off yesterday’s lows in the 1.2860 area.

GBP/USD levels to consider

As of writing the pair is up 0.79% at 1.2982 and a breakout of 1.3114 (20-day sma) would aim for 1.3373 (high Aug.3) and finally 1.3481 (high Jul.15). On the other hand, the next support aligns at 1.2863 (low Aug.15) followed by 1.2849 (low Jul.11) and then 1.2796 (2016 low Jul.6).