- The GBP/USD climbs sharply as US inflation disappoints; UK economy exceeds expectations.
- Technical outlook remains bullish with RSI near overbought, signaling potential for further gains.
- Key resistance levels: 1.2950, 1.2995, and 1.3142; support at 1.2894, 1.2860, and 1.2800 if pullback occurs.
The Pound Sterling extended its gains on Thursday following better-than-expected data from the UK as the economy expanded above estimates. US inflation missed the mark, coming softer a headwind for the Greenback. Therefore, the GBP/USD trades at 1.2927, up 0.62%.
GBP/USD Price Analysis: Technical outlook
From a technical standpoint, the GBP/USD uptrend remains intact. The pair hit a new year-to-date (YTD) high after clearing the March 8 high of 1.2894.
Momentum favors buyers as the Relative Strength Index (RSI) stands bullish, slightly beneath overbought conditions.
Therefore, if GBP/USD pushes above 1.2950, that could pave the way for testing the July 27, 2023, peak of 1.2995, ahead of testing 1.3000. Further upside is seen once cleared on July 14, 2023, at a high of 1.3142.
On the flip side, if GBP/USD tumbles below 1.2900, the pair could be set for a pullback. The next support would be 1.2894, followed by the June 12 high turned support at 1.2860 and the 1.2800 mark.
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