GBP/USD probing session lows near 1.2330 ahead of data

The Sterling is surrendering part of yesterday’s sharp gains and is now pushing GBP/USD back to the 1.2330 area, or daily lows.

GBP/USD offered ahead of UK data

Spot is giving away some of yesterday’s impressive advance to fresh 2-week tops above the 1.2400 handle amidst quite a moderate recovery of the US Dollar.

GBP gained more than three cents on Tuesday, climbing from daily lows near 1.2040 to the area just above 1.2400 the figure boosted by higher-than-expected inflation figures in the UK during December and a positive message from PM Theresa May at her speech, calling for a more united UK while she insisted on maintaining strong ties with the European Union.

Ahead in the session, UK’s labour market figures are due, with consensus expecting the Claimant Count to have increased by 3.7K during the last month of 2016 and the jobless rate to advance to 4.9%.

In the US, inflation figures tracked by the CPI will grab all the attention ahead of Industrial Production, the NAHB index and the Fed’s Beige Book. Additionally, Dallas Fed Robert Kaplan (voter, hawkish), Minneapolis Fed Neil Kashkari (voter, centrist) and Chairwoman Janet Yellen are due to speak later in the day.

GBP/USD levels to consider

As of writing the pair is retreating 0.49% at 1.2649 and a break below 1.2260 (20-day sma) would aim for 1.2014 (low Jan.17) and finally 1.1979 (low Jan.16). On the other hand, the next resistance aligns at 1.2415 (high Jan.17) ahead of 1.2437 (high Jan.6) and finally 1.2557 (100-day sma).