The British pound has moved sharply higher against the greenback, following much better than expected January CPI inflation figures from the American economy. The GBPUSD pair has now reclaimed the 1.4000 handle, after the U.S Consumer Price Index came in at 0.5 percent, which was better than the 0.3 percent the market had been expecting. Going forward, traders will look towards the key 1.4000 handle on sterling for further intraday direction and the 88.00 level on the U.S dollar index.
The GBPUSD pair remains intraday bullish whilst clearly trading above the 1.4000 level, further upside towards the 1.4080 and 1.4150 levels seems possible.
Should GBPUSD price-action start to trade below the 1.4000 level, we may see a correction back towards the 1.3980 and 1.3940 levels.
