GBP/USD Reaches Strongest Level Since March Amid Bullish Moment.

The GBP/USD pair gained bullish momentum, reaching its highest level since March 21, surpassing 1.2750 during the early European session on Wednesday. In this area, we have identified confluences between the premium area of supply and resistances, along with a divergence on the RSI indicating overbought conditions.

Today, data published by the UK's Office for National Statistics (ONS) showed that inflation in the UK, as measured by the Consumer Price Index (CPI), declined to 2.3% year-on-year in April from 3.2% in March. However, this reading was above the market expectation of 2.1%. The core CPI, which excludes volatile food and energy prices, increased by 3.9% during the same period, exceeding analysts' estimates of 3.6%.

Despite this economic data, the price appears to have made a bullish spike in lower timeframes, with a new H4 candle opening with a bearish sentiment. The price may reject the aforementioned area and retrace 50% from the major swing higher.

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