GBP/USD (current price: 1.2465)
The U.S. Dollar benefited from the continued rise in global stocks yesterday, as U.S. stock markets still outperformed the other major exchanges. The improving sentiment regarding the expected tax reform lifted the USD once again. The British CPI slightly missed expectations, while the Housing Price Index grew by more than expected in January. The U.S. PPI Index beat the consensus estimate by a wide margin, pushing the Dollar even higher in the second half of the day.
Our assessment: GBP/USD is trading in a narrow short-term range after the rally in January. Strong resistance is still ahead near 1.2850 with support found at 1.23.
