GBP/USD is currently struggling just above the support area of 1.2120-40. Today, there are not many events on the GBP front. Among them are a 10y bond auction which previously was at 1.18/2.3 and was published at 1.31/2.2. This event did not helped much the GBP to gain some ground as it gained yesterday. Today was the day for the USD to dominate the GBP. The US PPI report showed a 0.3% rise in factory inflation, stronger than the forecast of a 0.1% growth. Besides, the Core PPI also came a bit better than expected 0.2%, the indicator logged a 0.3% gain. Meanwhile, the USD has already gained a great amount of strength to engulf yesterday's bullish price action and today's daily close will signal upcoming moves in this pair.
Now let us look at the pair from the technical viewpoint. The price has rejected the bears from the support area of 1.2120-40 and is currently showing some bullish intervention. As the price has already rejected the bears from the support area, we will be looking forward to buy only after the nearest resistance of 1.2200 is taken out with a daily close. Otherwise, the pair is expected to be in a bearish bias if it remains below the 1.2200 resistance.
