GBPUSD

The higher-than-expected CPI data announced by the UK has raised the possibility of a recession in the UK economy similar to that of the US. Today's direction of GBPUSD at the pivot level of 1.34201 will be determined by US data. Worse-than-expected US data could weaken the dollar, pushing the pair towards the resistance levels of 1.34659 (R1) and 1.35135 (R2). Conversely, good data could strengthen the dollar, pulling it down to the support levels of 1.33725 (S1) and 1.33267 (S2). Increased volatility in the pair is expected ahead of the US opening.