GBP/USD outlook: Cable hits new multi-month high on hotter than expected UK inflation
|GBP/USD
Cable eased to 1.3400 zone on Wednesday after fresh acceleration on hotter than expected UK inflation data probed through peaks of 2024 and 2025 (1.3434/1.3444) and hit the highest in over three years (1.3468).
Although gains were so far short-lived, as traders collected some profits on overbought signals, overall bullish structure is expected to remain intact.
Weakening dollar remains among main drivers of pound, with unexpectedly strong rise in consumer prices In April (the largest increase since 2022 / hit the highest in 15 months) adding pressure on the central bank for fewer rate cuts or delay in policy easing and making sterling more attractive.
Daily studies remain in full bullish setup (strengthening positive momentum / rising thick daily cloud continues to underpin the action / daily Tenkan/Kijun-sen about to complete bull-cross), though bulls may pause for consolidation due to overbought conditions and persisting headwinds that 1.3434/44 barriers produce.
Dips are likely to be limited and provide better levels for re-entering bullish market.
Res: 1.3468; 1.3500; 1.3557; 1.3600.
Sup: 1.3400; 1.3360; 1.3305; 1.3250.
Interested in GBP/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.