GBP/USD Forecast: UK inflation data could challenge bulls´ determination
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UPGRADEGBP/USD Current price: 1.3911
- The British Pound has managed to resist the dollar’s demand once again.
- The January UK annual CPI is foreseen at 0.5% from 0.6% previously.
- GBP/USD retains its bullish potential, finding buyers on intraday dips.
The GBP/USD pair peaked at 1.3951, its highest since April 2018, retreating from the level during US trading hours, but holding on to modest intraday gains above the 1.3900 level. As it has been happening lately, the pair depended on how speculative interest perceived the greenback, with the pound being quite resilient to dollar’s demand.
The UK will publish January inflation data this Wednesday. The annual CPI is foreseen at 0.5% from 0.6% previously while the core annual inflation is expected at 1.3%. Producer Prices in the same month are expected to have contracted from their previous readings.
GBP/USD short-term technical outlook
The GBP/USD pair has bounced from a daily low of 1.3868 and trades around 1.3910 ahead of the Asian opening. The near-term picture keeps supporting a bullish continuation towards the 1.4000 threshold. In the 4-hour chart, the pair met buyers around a firmly bullish 20 SMA, which advances beyond the larger ones. Technical indicators hold near overbought readings, but lost directional strength, still far from suggesting bullish exhaustion.
Support levels: 1.3890 1.3840 1.3790
Resistance levels: 1.3955 1.4000 1.4040
GBP/USD Current price: 1.3911
- The British Pound has managed to resist the dollar’s demand once again.
- The January UK annual CPI is foreseen at 0.5% from 0.6% previously.
- GBP/USD retains its bullish potential, finding buyers on intraday dips.
The GBP/USD pair peaked at 1.3951, its highest since April 2018, retreating from the level during US trading hours, but holding on to modest intraday gains above the 1.3900 level. As it has been happening lately, the pair depended on how speculative interest perceived the greenback, with the pound being quite resilient to dollar’s demand.
The UK will publish January inflation data this Wednesday. The annual CPI is foreseen at 0.5% from 0.6% previously while the core annual inflation is expected at 1.3%. Producer Prices in the same month are expected to have contracted from their previous readings.
GBP/USD short-term technical outlook
The GBP/USD pair has bounced from a daily low of 1.3868 and trades around 1.3910 ahead of the Asian opening. The near-term picture keeps supporting a bullish continuation towards the 1.4000 threshold. In the 4-hour chart, the pair met buyers around a firmly bullish 20 SMA, which advances beyond the larger ones. Technical indicators hold near overbought readings, but lost directional strength, still far from suggesting bullish exhaustion.
Support levels: 1.3890 1.3840 1.3790
Resistance levels: 1.3955 1.4000 1.4040
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