GBP/USD outlook: UK inflation data could provide clearer near-term direction signal
Cable is standing at the front foot on Tuesday, following strong downside rejection previous day and inflated by fresh risk sentiment that weakened dollar.
Larger uptrend remains intact despite double failure at 1.3700 zone, as subsequent dips stay above rising 20DMA for the third consecutive day, with initial signal of bear-trap under 20DMA (currently at 1.3564). Daily studies are in mixed mode as bullish momentum continues to fade and stochastic is descending but Tenkan-sen and Kijun-sen lines are in bullish setup and rising cloud continues to underpin the action.
GBP/USD holds steady near session tops, above 1.3600 mark
The GBP/USD pair maintained its bid tone through the early North American session and was last seen hovering near the top end of its daily trading range, around the 1.3615-20 region.
The pair built on the previous session's intraday bounce of around 80 pips and gained some follow-through traction during the first half of the trading action on Tuesday. The uptick was supported by the emergence of some US dollar selling, through lacked any strong bullish conviction.
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