The British pound has moved sharply higher against the U.S dollar during the European trading session, following the release of better than expected Core CPI inflation figures from the United Kingdom Economy. The GBPUSD pair has so far found intraday resistance around the 1.3920 level, with price-action testing back towards the 1.3900 region. Sterling traders will now look towards the pivotal 1.3892 level for direction and the U.S dollar index, which is currently suffering heavy daily losses.
The GBPUSD pair remains intraday bullish whilst trading above the 1.3892 level, further upside towards the 1.3939 and 1.4000 resistance levels appears possible.
Should GBPUSD price-action slip back below the 1.3892 level, we may see a downside correction back towards the 1.3832 and 1.3775 support levels.