The GBP/USD pair rallied in the short term as the USD was weakened by the DXY's sell-off. As you already know from my analysis, the US reported lower inflation in March, forcing the greenback to lose more ground. This situation helps the Fed to maintain its monetary policy in the next meeting or to deliver only a 25 bps hike.
Today, the PPI, Core PPI, and the Unemployment Claims came in worse than expected. This was very bad for the greenback, which is expected to lose more ground versus its rivals. Tomorrow, the US retail sales could be decisive in the short term. Only better than expected data could save the USD from the downside.
GBP/USD new sell-off invalidated
Technically, the GBP/USD pair resumed its growth after taking out the upper median line (UML) and 1.2486. You knew from my yesterday's analysis that if the rate makes a valid breakout above these obstacles, the price will jump higher.
Now, it has retreated a little after making only a false breakout above the 1.2525 and through the R1 (1.2530).
GBP/USD outlook
The bias remains bullish as long as it stays above the 1.2486 and above the UML. A new higher high activates further growth. So, a bullish closure above the R1 (1.2530) is seen as a bullish signal.
