Yesterday’s trade saw GBP/USD within the range of 1.4411-1.4537. The pair closed at 1.4454, losing 0.45% on a daily basis. It has been the 19th drop in the past 31 trading days. The daily low has been the lowest level since February 11th, when a low of 1.4382 was registered.
At 7:49 GMT today GBP/USD was edging down 0.09% for the day to trade at 1.4441. The pair touched a daily high at 1.4458 during the early phase of the Asian trading session, undershooting the daily R1 level, and a daily low at 1.4405 at 6:45 GMT.
On Tuesday GBP/USD trading may be influenced by the following macroeconomic reports as listed below.
Fundamentals
United Kingdom
Consumer Inflation
The annual rate of inflation in the United Kingdom probably accelerated to 0.3% in January, according to the median estimate by experts, from 0.2% in December. If so, this would be the 25th consecutive month, when annualized consumer prices remained below the 2-percent objective, set by the Bank of England. However, it would also be the highest annual inflation since January 2015, when consumer prices climbed 0.3% year-on-year.
In December upward pressure to consumer prices came from cost of housing and utilities (up 0.3% year-on-year for a second straight month). An additional upward impulse came from prices at restaurants and hotels (up 1.7% and following a 1.8% surge in November) and cost of miscellaneous goods and services (up 1.1% and following a 1.3% increase in the preceding month), according to the report by the Office for National Statistics.
On the other hand, in December downward pressure to the Consumer Price Index came from cost of recreation and culture (down 0.3% year-on-year after a 0.1% dip in November), food and non-alcoholic beverages (down 2.9% and following a 2.4% slump in the prior month), clothing and footwear (down 0.3% following a flat performance in the previous month) and transport (down 0.2%, easing from a 2.1% drop in November).
The annualized core consumer price inflation probably decelerated to 1.3% in January, according to market expectations, from 1.4% in December. The latter has been the highest core inflation since January 2015. This indicator measures the change in prices of goods and services purchased by consumers, without taking into account volatile components such as food, energy products, alcohol and tobacco.
In case the annual CPI came in line with expectations or further approached the central bank’s inflation objective, this would have a strong bullish effect on the pound. The Office for National Statistics (ONS) will publish the official CPI report at 9:30 GMT.
United States
New York Empire State Manufacturing Index
The New York Empire State Manufacturing Index probably improved to a value of -10.00 in February, according to the median forecast by experts, from -19.37 in January. The latter has been the lowest level since March 2009, as the sub-indexes of new orders and shipments went down sharply, while labor market conditions in the sector continued to worsen. If market expectations were met, February would be the seventh straight month, when the gauge inhabited negative territory.
The index is based on the monthly Empire State Manufacturing Survey, which is conducted by the Federal Reserve Bank of New York. About 200 top manufacturing executives respond to a questionnaire, sent out during the first day of the month. They provide their estimates in regard to the performance of several business indicators from the prior month, while also forecasting performance during the upcoming six months.
Readings below 0.00 are indicative of worsening business conditions in the region. Lower-than-anticipated index values will usually have a moderate bearish effect on the US dollar. The Federal Reserve Bank of New York is expected to release the official reading at 13:30 GMT.
NAHB Housing Market Index
The National Association of Home Builders (NAHB) Housing Market Index probably remained at 60.0 for the second consecutive month in February, according to market expectations. If so, this would be the 20th consecutive month, when the gauge stood in the area above 50.0. In December the index was reported at 61.0. The indicator is based on a monthly survey in regard to current home sales and expected sales in the coming six months. Values above the key level of 50.0 indicate that housing market conditions are good. Therefore, higher-than-projected readings would provide a moderate support to the US dollar. The official report is scheduled for release at 15:00 GMT.
Daily and Weekly Pivot Levels
By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:
R1 – 1.4466
R2 – 1.4477
R3 (range resistance) – 1.4490
R4 (range breakout) – 1.4523
S1 – 1.4442
S2 – 1.4431
S3 (range support) – 1.4419
S4 (range breakout) – 1.4385
By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:
Central Pivot Point – 1.4479
R1 – 1.4608
R2 – 1.4708
R3 – 1.4837
S1 – 1.4379
S2 – 1.4250
S3 – 1.4150
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
