- The bearish pressure remains high as long as it stays below the median line.
- A new higher high activates a larger rebound.
- The price action signaled an oversold.
The GBP/USD price rallied today and hit as high as 1.2481 after the UK CPI came in better than expected. Now, the pair has retreated a little and is trading at 1.2457 at the time of writing.
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In the short term, the pair lacks strong conviction. So, we’ll have to wait for fresh opportunities before taking action.
The downside pressure remains high despite short-term rebounds, as the US dollar is still bullish. The US Building Permits, Housing Starts, and Capacity Utilization Rate came in worse than expected, while Industrial Production reported a 0.4% growth as expected.
Today, the British Pound took the lead as the UK Consumer Price Index reported a 3.2% growth versus the 3.1% growth estimated, while Core CPI announced a 4.2% growth, exceeding the 4.1% growth estimated. However, the HPI and PPI Input came in worse than expected.
Tomorrow, the US Unemployment Claims, Philly Fed Manufacturing Index, CB Leading Index, and Existing Home Sales can move the prices. Moreover, the United Kingdom retail sales data should bring high action on Friday.
GBP/USD Price Technical Analysis: Retesting After Breakout
Technically, the currency pair failed to stay below the lower median line (lml) of the descending pitchfork, signaling sellers’ exhaustion. However, the bias remains bearish as long as it stays below the median line (ml).
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After today’s strong rally, the price could come back to retest the demand zone from above 1.2420. A larger rebound could be activated after taking out the median line (ml) of the descending pitchfork and the 1.2498 static resistance. On the contrary, a new lower low activates more declines.
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- Source: https://www.forexcrunch.com/blog/2024/04/17/gbp-usd-price-rebounds-as-uk-inflation-remains-hot/
