British Pound climbs as soft US inflation data hurt Fed hawkish bets
The Pound Sterling registered modest gains versus the Greenback as US inflation data on the producer side came below or aligned with estimates, revealing that the disinflation process continued. The GBP/USD trades at 1.3503, up 0.06%.
Technical Analysis
GBP/USD
In the daily chart, GBP/USD trades at 1.3497, holding above the cluster of the 50/100/200-day simple moving averages (SMA) around 1.3370 and the reclaimed trend-line levels at 1.3425 and 1.3344, which together reinforce a bullish near-term bias. The Relative Strength Index (14) at 59.3 stays in positive territory without being overbought, hinting that upside momentum is constructive rather than stretched, while the FXS Fed Sentiment Index near 136.6 suggests a still-elevated but cooling policy anxiety backdrop that may keep directional moves sensitive to incoming US data.
On the topside, immediate resistance emerges at the descending trend line break near 1.3510, followed by the higher upward-support trend-line break around 1.3575, where the recent advance could meet stronger supply. On the downside, first support is seen at the former resistance trend line now turned floor around 1.3425, ahead of the grouped long-term SMAs near 1.3370 and the lower structural trend support at 1.3344, levels that would need to give way to undermine the current bullish technical tone.
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