The Great Britain pound (GBP) rose against the US Dollar (USD) on Wednesday, increasing the price of GBPUSD to more than 1.3200 amid the release of Britain’s consumer price index news. The technical bias might remain bullish in the short term since the price marked a higher high during the ongoing upward move on the daily timeframe.
As of this writing, the GBPUSD is being traded around 1.3244. An immediate resistance may be seen near 1.3300 (the psychological level) ahead of 1.3426, the upper trendline resistance level as demonstrated in the given below chart. A breakout above the 1.3426 resistance area shall trigger renewed bullish momentum towards the 1.3600 resistance zone.
On the downside, the price might find support near 1.3139, the lower trendline arm, as demonstrated in pink line on the above chart. Another significant support level may be seen around 1.2800 that is a cluster of horizontal support as well as psychological level. The technical bias may remain bullish as long as the 1.3139 support zone remains intact.
Britain’s Inflation News
The National Statistics department of the UK is scheduled to release the Consumer Price Index (CPI) report later today. The CPI data is considered to be a leading indicator of prevailing inflation across the country. According to the average forecasts of economists, the CPI declined by 0.1% in July as compared to an increase of 0.1% in the month before. Generally, a higher positive reading of CPI is considered bullish for GBPUSD and vice versa.
Considering the overall macro-economic and technical outlook, buying the GBPUSD pair near the above-mentioned support levels could be a great move. If we get an upbeat CPI data, then the pair might print some more solid gains during the US trading session today.