GBP/USD Price Analysis: 1.2100 under pressure ahead of key US CPI event

GBP/USD's 1.2170, 1.2150 and 1.2113 (daily W-formation neckline target area) areas were in focus.
Meanwhile, key structure target levels have either given out or are being tested, guarding against a full-on capitulation of the bulls.

Ross J Burland FXStreet

As per the start of the week's technical analysis for GBP/USD, GBP/USD Price Analysis: Bullish impulse is decelerating, eyes on 1.2150, where the outlook has been bearish while below 1.2400 and 1.2220 nearer-term highs, cable has remained hamstrung to the downside as the following illustrates. Meanwhile, the US Consumer Price Index could be the catalyst to trigger a move below 1.2100 recent lows.

GBP/USD prior analysis

The market was on the back side of the recent supportive trendline at the start of the week and the price broke 1.1900 structure leaving a bearish bias on the charts.

Zoomed in...

The W-formation was supportive of the bearish thesis given that it is a reversion pattern. It was stated that GBP/USD would be expected to move in towards the neckline and day's lows of near 1.2080. So far, we have seen the price dishevelled to test 1.21 the figure and test the structure that guards against a run to the prior broken lows of 1.1900 and 1.1778 below there.

It was stated that the lower time frames can be monitored for a deceleration of the bullish run and signs of distribution as follows:

1.2170, 1.2150 and 1.2113 (daily W-formation neckline target area) areas were meanwhile key structure target levels that have either given out or are being tested, guarding against a full-on capitulation of the bulls and bears taking over towards the 1.1900 target area.

GBP/USD update, daily and H1 charts

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.