The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.3250, following the release of some key economic news. The technical bias remains bullish because of a higher high in the recent upside rally.
As of this writing, the pair is being traded near 1.3268. A support may be seen around 1.3250, the confluence of a major horizontal support as well as the psychological number as demonstrated in the given below four-hour chart. A break and four-hour candle closing below the 1.3250 support area could incite the renewed selling interest, validating a move towards the 1.3200 level in a short term.
On the upside, the price of cable is expected to face a hurdle near 1.3335, the intraday high of Friday ahead of 1.3443, the swing high of the latest major upside rally. The technical bias will remain bullish as long as the 1.3059 support area is intact.
UK Consumer Expectations
In the latest Bank of England/TNS inflation Attitudes survey, the expected annual inflation rate for the next 12 months was 2.2% for August from 2.0% in the previous quarter. The real test for expectations will come when the reported inflation starts to rise. There was a decline in 5-year expectations to 3.0% from 3.4%, while the current inflation rate was estimated at 1.8% from 2.2% in May. The headline CPI rate was 0.5% when the survey was taken with core inflation at 1.2% and RPI inflation at 1.9%.
Considering the overall technical and fundamental outlook, buying the pair around the current levels appears to be a good strategy in short to medium term.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT