The GBP/USD pair edged higher after the US reported lower inflation. Now, it's trading in the red at 1.2389 on the H1 chart. After its strong rally, a minor retreat is natural. It could come back to test and retest the immediate support levels before trying to resume its growth.
Fundamentally, the British Pound received a helping hand from the UK data yesterday. Today, the UK reported mixed data. Still, the US inflation figures represented a high-impact event. As you already know, the US reported lower inflation which was bad for the USD as the FED is expected to deliver lower hikes. Tomorrow, the FOMC could really shake the markets again.
GBP/USD Bullish Bias!
As you can see on the h1 chart, the rate tested and retested the uptrend line, stabilizing above the weekly pivot point of 1.2240. You knew that the bias remains bullish as long as it stays above this uptrend line.
Now, it has rallied, ignoring the 1.2344 static resistance and the weekly R1 (1.2370). After its strong rally, we cannot exclude a minor retreat. The price could test and retest the broken levels confirming its breakout.
GBP/USD Forecast!
It has climbed as much as 1.2443 today where it has found supply. Now, it could test and retest the R1 and the 1.2344. Retesting 1.2344 and registering false breakdowns below may announce a new upside momentum.
An upside continuation could be confirmed by a new higher high, if the price jumps, closes, and stabilizes above 1.2443. This could represent a new long opportunity.
