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GBP/USD Price Analysis: Spikes beyond 1.2900 as USD weakens on weak CPI

  • GBP/USD rises sharply as US inflation disappoints; UK economy beats expectations.
  • The technical outlook remains bullish with the RSI near overbought levels, signaling potential for further gains.
  • Key resistance levels: 1.2950, ​​1.2995 and 1.3142; support at 1.2894, 1.2860 and 1.2800 if a pullback occurs.

The Pound sterling The GBP/USD extended its gains on Thursday following better-than-expected data from the UK, as the economy expanded above estimates. US inflation missed expectations, acting as a headwind for the Dollar. Therefore, GBP/USD is trading at 1.2927, up 0.62%.

GBP/USD Price Analysis: Technical Outlook

From a technical perspective, the GBP/USD uptrend remains intact. The pair reached a new yearly (YTD) high after breaking above the March 8 high of 1.2894.

Momentum favors buyers as the RSI remains bullish, slightly below overbought conditions.

Therefore, if GBP/USD breaks above 1.2950, ​​that could pave the way for a test of the July 27, 2023 peak of 1.2995, before testing 1.3000. Further upside is expected once cleared on July 14, 2023, at a high of 1.3142.

On the other hand, if GBP/USD falls below 1.2900, the pair could be ready for a pullback. The next support would be 1.2894, followed by the June 12 high turned support at 1.2860 and the 1.2800 mark.

GBP/USD Price Action – Daily Chart

Pound Sterling PRICE Today

The table below shows the exchange rate of the British Pound (GBP) against major currencies today. The British Pound was the strongest currency against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.45% -0.58% -1.95% -0.08% -0.54% -0.59% -0.67%
EUR 0.45% -0.12% -1.50% 0.37% -0.09% -0.13% -0.22%
GBP 0.58% 0.12% -1.39% 0.50% 0.03% -0.02% -0.09%
JPY 1.95% 1.50% 1.39% 1.87% 1.42% 1.34% 1.29%
CAD 0.08% -0.37% -0.50% -1.87% -0.48% -0.51% -0.59%
AUD 0.54% 0.09% -0.03% -1.42% 0.48% -0.04% -0.12%
NZD 0.59% 0.13% 0.02% -1.34% 0.51% 0.04% -0.07%
CHF 0.67% 0.22% 0.09% -1.29% 0.59% 0.12% 0.07%

The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the chart will represent the GBP (base)/USD (quote).

Source: Fx Street

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