GBP/USD accelerates the upside to 1.2670

The Sterling is now picking up further pace in detriment of the greenback, sending GBP/USD to daily tops in the 1.2665/70 band.

GBP/USD focus on UK CPI, FOMC

The pair has reverted the initial negative mood and is now trading in the upper end of today’s range, gaining nearly a cent since recent lows and reverting at the same time a 4-session negative streak.

The renewed offered bias in the buck is  allowing the ongoing rebound in the risk-associated space, boosted already by the rally in crude oil prices following the non-OPEC deal clinched over the weekend.

Looking ahead, UK’s inflation figures (Tuesday) area expected to show consumer prices rose at an annualized 1.1% during November, while Core prices are seen gaining 1.3% over the last twelve months. Across the pond, the most relevant event will be the FOMC meeting on Wednesday, with expectations clearly tilted towards a 25 bp rate hike by the Fed.

On the positioning side, GBP speculative shorts have been trimmed to the lowest level since early August, while net shorts have retreated from record levels during the week ended on December 6 and according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.27% at 1.2662 facing the next up barrier at 1.2706 (high Dec.8) followed by 1.2767 (100-day sma) and finally 1.2776 (high Dec.6). On the other hand, a break below 1.2545 (low Dec.9) would expose 1.2530 (20-day sma) and then 1.2462 (55-day sma).