FXstreet.com (Barcelona) The Pound has left behind the 1.4200 level and it has reached the 1.4300 resistance supported by the better than expected UK January inflation data.
GBP/USD has risen more than 160 pips from the 1.4150 to the 1.4311 level in the hour after the release of the UK CPI Data. After that, the pair begun to fall slightly to 1.4260/70 range.
The GBP/JPY has earned more than 190 pips, in the hour after the data publish, from the 129.63 level, daily bottom, to the 131.56. Now the pair is moving around the 131.20/30 range.
According to Valeria Bednarik, FXstreet.com Collaborator: London session opening halted dollar rally triggered in the Asian session by renewed risk aversion, and started some downside correction supported by better than expected inflation reports in England, and on higher economic expectations in German ZEW survey. Full volatility is back in market, with Euro breaking lower and the overall looser against rivals.
However, actual movements remain just a technical correction and majors are ready to continue falling after breaking technical important levels or even figures like in the case of the USD/JPY daily triangle that even completed a pullback, Valeria concluded.