GBP Trading Outlook (15-06-2011)

The Sterling (GBP) was unable to rally past the key resistance area at 1.6460-1.6500 even after stronger than rumored CPI numbers for May at 4.5% y/y. The pullback began on EUR/GBP buying and Cable slipped below 1.6400 to fall even lower in late US trade. Overall the GBP/USD traded with a low of 1.6353 and a high of 1.6444 before closing the day at 1.6370 in the New York session. Looking ahead, May Claimant Count forecast at 7k vs. 12.4k previously.

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