Sterling recovers as British CPI meets expectations and risk on sentiment returns to the financial markets. Yesterday's year on year British CPI figure matched expectations by printing at 2.5%, and this positivity from the British economy did not allow the pair to break below 1.26890. Additionally, easing trade tensions between U.S and China helped spur demand into risk on assets and financial instruments such as the Pound. For today, traders are focusing on the U.K's Retails Sales figure. A continuation of the upbeat economic releases from the U.K will attract more Cable bulls and lead to another leg upwards for the currency.
The Pound bounces off the 1.26890 support level following positive fundamentals from the U.K. Depending on U.K's Retail Sales figure, the currency may either break higher above 1.27365 exposing the 1.27891 level or break below the 1.26890 mark exposing the 1.26397 support level.
Support: 1.26890 1.26397
Resistance: 1.27365 1.27891