The GBP/USD pair has seen a boost in buying interest, leading to a climb past the 100-day moving average (DMA). This rise in demand has pushed the Pound Sterling to a five-week high of 1.2670, following the release of the US Consumer Price Index (CPI). The data from the US was largely as expected, indicating a continuation of disinflation, which put pressure on the US Dollar. As a result, the GBP/USD is currently trading at 1.2641.
From a technical perspective, the GBP/USD remains neutral to slightly bullish, with key resistance levels to watch out for. The pair has retreated towards the 100-DMA at 1.2632, which is seen as a crucial level that, if breached, could signal further upside potential. The Relative Strength Index (RSI) supports the bullish sentiment, as it points upwards with room for further gains before reaching overbought territory.
If buyers manage to reclaim the 100-DMA, the next resistance level to watch out for is at 1.2670, followed by the April 9 high at 1.2709. Beyond that, the pair could rally towards the next supply zone at 1.2803, and possibly reach the March 21 high at 1.2894. On the other hand, sellers are hoping for a break below the 100-DMA to target the 1.2600 level. If the pair manages to close below that level, the next support levels to watch out for are at the 50-DMA and the 200-DMA.
Overall, the GBP/USD pair is seeing strong buying interest, with key resistance levels at 1.2670 and 1.2700. Sellers are targeting a close below the 100-DMA to challenge the 1.2600 level. The technical outlook remains neutral to slightly bullish, with the RSI pointing upwards. If buyers continue to push the pair beyond key resistance levels, further gains could be on the horizon. On the other hand, a break below support levels could pave the way for a potential downward move.
