• Brexit white paper triggers the initial leg of rebound from an ascending trend-channel support.
• USD witness some selling on softer US CPI print and provides an additional boost.
The GBP/USD pair reversed an early dip to an intraday low level of 1.3180, or over one-week lows, and spiked to fresh session tops post-US CPI, albeit lacked any strong follow-through.
The pair managed to find some buying interest near a support marked by short-term ascending trend-channel formation on the 1-hourly chart. The release of updated Brexit white paper triggered the initial leg of rebound and was further supported by a modest US Dollar retracement.
The USD struggled to build on its positive momentum and was being capped by softer US inflation figures, coming in to show 0.1% m/m rise in June as against 0.2% expected. However, mostly in-line core CPI/yearly figures and upbeat weekly initial jobless claims data helped limit a sharp downfall and eventually kept a lid on any meaningful up-move for the major.
Currently hovering around 200-hour SMA, the hourly chart set up points to further upside and short-term technical indicators also support prospects for additional gains.
However, a decisive break below the trend-channel support might negate the positive outlook and turn the pair vulnerable to extend this week's rejection slide from 50-day SMA.
Spot rate: 1.3192
Daily High: 1.3226
Daily Low: 1.3180
Trend: Bearish below trend-channel support
R1: 1.3256 (100-period SMA H1)
R2: 1.3317 (R2 daily pivot-point)
R3: 1.3335 (50-day SMA)
S1: 1.3180 (descending trend-channel)
S2: 1.3144 (S2 daily pivot-point)
S3: 1.3095 (July 2 swing low)
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 securities. 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 Forex 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.