The Great Britain Pound inched higher against the US Dollar (USD) on Tuesday, increasing the price to more than 1.2600. The price increases amid major economic release concerning CPI. The technical bias might remain since a lower high was printed during the last downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2610. A trend line resistance is likely to hit the price around 1.2697, keeping it stick to the current level ahead of 1.2837, the 61.8% Fib level followed by a resistance stands next around 1.3381, the high of March 13, 2019, as shown in the graph below.
Coming towards the downside, the price may fall until l 1.2500, a key horizontal support stops it from falling below this level. Another support level is likely to come across at 1.2292, the 23.6% Fib level ahead of 1.2229, the confluence of two trend lines which might act as a strong support level and help price to take a turn back as shown in the graph above. The technical bias may remain bullish as long as 1.2500, the major horizontal resistance level remains intact.
US Consumer Price Index Excluding Food & Energy
The CPI (Consumer Price Index) is released by the US Department of Labor Statistics recently. It suggests an estimation of movements of price by comparing multiple products after considering them from various representative shopping baskets. The products are selected on a sampling basis except for volatile items such as food and energy in order to arrive at unbiased calculation.
Generally speaking, if a high reading is seen then it indicates a bullish market for the US Dollar whereas a low reading implies a downward trend ahead.
Considering the price movement of the pair over the last couple of days, buying GBP/USD around current levels would do great in the short to medium term. However, opening up long positions might also benefit if the price continues to follow the bullish trend.