Today will be released the UK CPI (Inflation Rate) for November, following a gain of 0.9% in October, which was a slightly-than-expected data from the 1% posted in September. Market’s analysts are expecting an increase to 1.1%, which should help to boost the Sterling across the board and it’s likely to happen, despite the weakness seen on the GBP after Brexit’s referendum and recent talks about a possible “hard Brexit”.
Our technical analysis for GBP/USD at H4 chart is showing a bullish’s strengthening in the short-term, as the pair had been following a trend line plotted from October 25th lows, which also acts as a strong dynamic support. Now, the pair is facing a solid resistance around 1.2694, where a breakout higher should open the doors to test the 1.2765 level, followed by the 1.2800 handle. In the bearish scenario, if GBP/USD does a pullback at the current stage, then it can plunge towards 1.2492, where is located the bullish trend line mentioned above.
.png)
Origin: FX BAZOOKA
