GBPUSD renews intraday top near 1.1900 on upbeat UK inflation, US Retail Sales in focus

• GBPUSD ticks high on strong UK inflation prints for October.
• UK’s CPI jumps to 11.1% YoY, Core CPI reprints 6.5% figures.
• Recovery in market sentiment adds strength to the upside momentum ahead of US Retail Sales.

GBPUSD picks up bids to 1.1880 as the pair buyers cheer upbeat prints of the UK inflation numbers during early Wednesday. Also keeping the Cable pair buyers is the latest shift in the market’s mood and the US Dollar’s weakness ahead of the key US Retail Sales data.

The UK’s headline inflation number, namely the Consumer Price Index (CPI) rose to 11.1% YoY versus 10.7% expected and 10.1% prior whereas the Core CPI reprinted the 6.5% mark versus the forecasts of 6.4%.

Also read: Breaking: UK annualized inflation jumps to 11.1% in October vs.10.7% expected

Other than the British inflation numbers, a shift in the market’s mood also favored the GBPUSD buyers. Late on Tuesday, the news that Russian-made rockets were fired at Poland and killed two people triggered the risk-off mood. The same triggered emergency meetings of the North Atlantic Treaty Organization (NATO) and the Group of Seven (G7), which in turn favored the US Dollar (USD) due to its safe-haven appeal. However, the latest news shared by the Associated Press (AP) quoted an anonymous US official’s findings while mentioning that the missile may have been fired by Ukraine. As a result, the risk aversion ebbed and the greenback reversed the early-day gains at the latest.

Against this backdrop, the US stock futures are again mildly positive, reversing the initial losses, whereas the US 10-year Treasury yields snap a two-day downtrend near 3.82% as we write.

Having witnessed the initial reaction to the UK inflation numbers, the GBPUSD pair traders should pay attention to the US Retail Sales for October, expected to post 1.0% growth versus 0.0% prior. Should the key consumer-centric data match the upbeat forecasts, the US Dollar may portray recovery moves amid the latest rebound in the Treasury yields.

Also read: US October Retail Sales Preview: US Dollar unlikely to find reprieve

Technical analysis

Although overbought RSI conditions and a downward-sloping resistance line from June, around 1.2030 by the press time, challenge the GBPUSD buyers, successful trading beyond the 100-DMA level surrounding 1.1650 keeps the bulls hopeful.