GBP/USD: British Pound Edges Higher on Disinflationary US Data
The British Pound (GBP) gained ground against the US Dollar (USD) following the release of US Consumer Price Index (CPI) data that aligned with expectations. This report signaled a continuation of disinflation in the US economy, weakening the USD.
Key Takeaways:
- GBP/USD reached a five-week high of 1.2670.
- Disinflationary pressures in the US weighed on the Dollar.
- The pair is currently trading around 1.2641.
Technical Outlook
Analysts see a neutral to upward bias for GBP/USD. The recent price action suggests potential for further gains:
- Resistance Levels to Watch:
- 1.2632 (100-DMA): A break above this key level could signal a bullish trend.
- 1.2670 (Today's High): Surpassing this resistance could open the door to test higher levels.
- 1.2709 (April 9th High): Breaking above this point could lead to a rally towards 1.2803.
- Support Levels:
- 1.2600: A daily close below this level, following a breach of the 100-DMA, could indicate a potential downward movement.
- 1.2591 (50-DMA): Further support level in case of a pullback.
- 1.2539 (200-DMA): The 200-DMA acts as a strong support level.
- Momentum Indicators: The RSI suggests there's room for further upside before the market becomes overbought.
Overall
The GBP/USD is consolidating with a potential bullish bias. A break above the 100-DMA could trigger further gains, while a close below this level might indicate a pullback.