GBP/USD eases from tops post-US CPI, still well bid above mid-1.3000s as focus remains on EU summit

   •  The British Pound remains underpinned by today’s upbeat UK macro data.
   •  Mixed US CPI figures failed to revive the USD demand and remained supportive.
   •  All eyes remain glued to the upcoming EU Brexit summit and FOMC minutes.

The GBP/USD pair held on to its positive tone through the early North-American session, though bulls struggled to extend the momentum beyond the 1.3100 handle post-US CPI.

After yesterday's sharp intraday pullback, the pair managed to regain positive traction on Wednesday and got an additional boost from today’s better than expected UK macro data - monthly GDP print and industrial/manufacturing production data.  
The intraday positive move was further supported by the prevalent weaker tone surrounding the US Dollar, which remained on the defensive following the release of mixed US consumer inflation figures for the month of March. 

The headline CPI came in to show a 0.4% m/m rise and the yearly rate climbed to 1.9% from 1.5% recorded in the previous month. The upbeat readings, to some extent, were negated by slightly weaker core inflation figures and did little to provide any meaningful lift to the greenback.

Despite the supporting factors, the pair seemed struggling to capitalize on the momentum as investors now seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the crucial EU summit on Brexit. 

There is a good chance that Article 50 will be extended for a second time but the length and the conditions of the extension might play an important role in influencing the near-term sentiment surrounding the British Pound and eventually provide some fresh directional impetus.

Technical levels to watch