GBP/USD Price Analysis: 20-DMA probes bulls near 1.2500 ahead of UK inflation

GBP/USD grinds higher around weekly top after rising the most since October 2020.
Monthly resistance break, firmer RSI keep buyers hopeful.
Previous support line from December 2021 lures buyers.

Anil Panchal FXStreet

GBP/USD bulls take a breather around 1.2500, after rising the most in 19 months the previous day. That said, the cable pair battles with the 20-DMA around the weekly top by the press time of Wednesday’s Asian session, while waiting for the monthly inflation data from the UK.

Read: UK CPI Preview: Inflation “apocalypse” priced in, GBP/USD has room to fall

Although the 20-DMA level near 1.2500 tests the GBP/USD bulls, the cable pair’s ability to cross the one-month-old descending trend line, around 1.2250 at the latest, joins the firmer RSI line to underpin bullish bias.

That said, the quote presently aims for the monthly peak surrounding 1.2640 before approaching the support-turned-resistance line from late 2021, around 1.2900 by the press time.

On the contrary, two-week-old horizontal support around 1.2400 could restrict the short-term pullback of the GBP/USD prices before directing the bears toward the previous resistance line near 1.2250.

In a case where GBP/USD drops below 1.2250, a south-run towards the latest multi-month low of 1.2155 and the 1.2000 psychological magnet can’t be ruled out.

GBP/USD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2496
Today Daily Change	0.0003
Today Daily Change %	0.02%
Today daily open	1.2493

Trends
Daily SMA20	1.2517
Daily SMA50	1.2868
Daily SMA100	1.3188
Daily SMA200	1.3382

Levels
Previous Daily High	1.2499
Previous Daily Low	1.2316
Previous Weekly High	1.2406
Previous Weekly Low	1.2155
Previous Monthly High	1.3167
Previous Monthly Low	1.2411
Daily Fibonacci 38.2%	1.2429
Daily Fibonacci 61.8%	1.2386
Daily Pivot Point S1	1.2373
Daily Pivot Point S2	1.2253
Daily Pivot Point S3	1.2191
Daily Pivot Point R1	1.2556
Daily Pivot Point R2	1.2619
Daily Pivot Point R3	1.2739

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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