Gbpusd Trades Close To Resistance

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Gbpusd Trades Close To Resistance

Gbp/Usd Trades Close To 1.2600 Resistance

The GBP/USD is just a few pips away from the 1.2600 resistance level as the market awaits the upcoming US CPI release. A day earlier, the GBP/USD closed in green, which suggests that the GBP bulls are in charge as we are only hours away from the CPI release.

It appears that the greenback is struggling to find buyers in the current circumstances. That's one of the reasons why the GBP/USD is maintaining its ground ahead of the retail sales and the US CPI.

Gbp/Usd Faces Resistance At 1.2650

closer look at the GBP/USD reveals that the 200 and the 20 SMA are both present near the 1.2550. So once the GBP/USD finds a stable base above these two lines, it will start to turn higher. However, we all know that CPI is just a few hours away, so taking any position before the announcement wouldn't be wise.

Looking ahead, the 1.2600 is the most obvious resistance, followed by the 1.2635 and then the 1.2650 levels. If the US CPI is not in favour of the greenback, it could allow the GBP/USD to move towards these targets.

As for the support zones, the GBP/USD traders will be looking out for 1.2550, 1.2500, and then 1.2450. In case of extreme selling in the GBP/USD, the pair can also move towards the 1.2400 handle.

Over all, the GBP/USD is having a little hard time going higher as it has only managed to secure 0.3% gains on a daily basis. It seems that the traders are now closely watching the CPI and the retail sales data to gauge the next direction for the cable.

Meanwhile, data from the UK showed that unemployment (ILO) had reached 4.3%, compared to 4.2% in March. This was mostly in line with the estimates, while the annual wage inflation also showed a reading of 5.7% against the 5.3% forecast. Overall, it seems that the GBP/USD is now looking towards the US CPI to get clues about the US interest rate and the Fed's next move.

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