Yesterday, the GBPUSD traded up to approach the 1.23 price area, a high last reached on 15th February.
However, as the move was quickly reversed as the GBPUSD retraced to retest the 1.22 price level again.
As the price failed to break below the support level and maintains above the upward trendline, the GBPUSD is likely to continue with its upward momentum.
UK CPI data is due to be released today and is expected to signal a slowdown in inflation growth. While this might provide some short term price volatility, which could see the GBPUSD trade slightly lower, the BoE interest rate decision is still due tomorrow. The BoE is expected to increase rates by 25bps as it continues to target bringing inflation down to the 2% target level.
Look for the GBPUSD to continue trading higher, to retest the 1.23 round number high, with the major key resistance level at 1.24.
However, as the move was quickly reversed as the GBPUSD retraced to retest the 1.22 price level again.
As the price failed to break below the support level and maintains above the upward trendline, the GBPUSD is likely to continue with its upward momentum.
UK CPI data is due to be released today and is expected to signal a slowdown in inflation growth. While this might provide some short term price volatility, which could see the GBPUSD trade slightly lower, the BoE interest rate decision is still due tomorrow. The BoE is expected to increase rates by 25bps as it continues to target bringing inflation down to the 2% target level.
Look for the GBPUSD to continue trading higher, to retest the 1.23 round number high, with the major key resistance level at 1.24.
