- GBP/USD holds on to earlier gains following UK CPI data.
- Immediate resistance at 1.2800 remains elusive for buyers.
- Support is seen at 1.2700; once broken, the GBP/USD pair could head towards a confluence of technical indicators around 1.2634.
The British pound maintains earlier gains against the dollar following a more bullish-than-expected inflation report in the UK, although the pair retreats from two-month highs as the CPI moves closer to the Bank of England's target. The GBP/USD pair is trading at 1.2739, up 0.24% on the day.
GBP/USD Price Analysis: Technical Insights
The pair maintains a neutral to bullish bias despite trading below the session's daily high at 1.2761. The momentum indicator supports buyers, as shown by the RSI, as they rely on the psychological figure of 1.2700 as the first line of defense.
To extend their gains, buyers must reclaim the March 21 high at 1.2803. The yearly highs are at 1.2893, 1.2900 and the psychological mark of 1.3000.
Conversely, a pullback would emerge once GBP/USD falls below 1.2700, exposing the confluence of the May 3 high and the 100-day moving average (DMA) at 1.2634, followed by the 50-DMA at 1.2581. .
GBP/USD Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
