GBP/USD consolidating above 1.5200

FXStreet (Edinburgh) - The buying interest is picking up pace around the sterling now, with GBP/USD hovering over 1.5230/35 after climbing as high as 1.5270.

GBP/USD looks to USD for clues

There are no further data releases scheduled in the UK economy for the rest of the week, leaving the USD dynamics as the main catalyst for the pair’s price action. Today’s knee-jerk by the greenback gave some oxygen to the risk-associated universe, allowing the current rebound beyond the 1.5200 mark. In another direction, BoE’s Mark Carney stressed that the inflation could drop below the current 0.5% YoY, although he also argued that a lower CPI will be welcomed by consumers. Carney also mentioned that the ongoing slump in oil prices is net positive for the UK economy (Scots might disagree) and he also suggested that the ECB could need more stimulus in order to meet the inflation target.

GBP/USD relevant levels

As of writing the pair is gaining 0.45% at 1.5232 and a breakout of 1.5274 (high Jan.6) would open the door to 1.5311 (Tenkan Sen) and finally 1.5355 (high Jan.5). On the flip side, the next support lines up at 1.5077 (low Jan.13) followed by 1.5034 (low Jan.8) and then 1.5028 (low Jul.15 2013).