Sterling gained strong support from upbeat CPI numbers, on 2.3% y/y in Feb vs 2.1% forecast and 0.7% m/m release beat the forecast at 0.5%.
Cable surged through daily cloud in immediate reaction on data and met next target at 1.2457 (Fibo 76.4% of 1.2568/1.2107 downleg), with 1.2476 (27 Feb high) and psychological 1.2500 barrier being in focus.
Better-than-expected inflation data are expected to further boost BoE’s hawkish hold from last week’s MPC meeting for early interest rate hike.
Broken daily cloud top now acts as immediate support, with the pair looking for daily close above it to confirm strong bullish stance.
Next support lies at 1.2408 (100 SMA) and guarding daily cloud base at 1.2379 that marks lower pivot.
Res: 1.2476, 1.2500, 1.2521, 1.2568
Sup: 1.2435, 1.2408, 1.2379, 1.2337
