Yesterday, the Cable peaked at 1.3951, its highest price since April 2018, retreating from the level during US trading hours, but holding on to limited intraday gains above the 1.3900 price level. A reoccurring scene, as the pair depended on how speculative interest perceived the US Dollar, with the British pound being quite robust to dollar’s demand.
Today Wednesday, the UK will publish its January inflation data. The yearly CPI is forecasted at 0.5% from 0.6% previously while the core annual inflation is expected at 1.3%. January Producer Prices are expected to have shrunk from their previous readings.
In the US, Investors will be watching the monthly US Retail Sales in January which is expected to improve to 1.1% from the previous negative of -1.4%.
Technically, the GBPUSD pair has bounced from a daily low of 1.3868 and trades around 1.3910 are ahead of the Asian opening. The picture keeps supporting a bullish continuation towards the 1.4000 threshold. In the 4-hour chart, the currency pair met bulls around a firmly bullish 20 SMA, which advances beyond the larger ones. Technical indicators hold near overbought readings, but lost directional strength, still far from suggesting bullish exhaustion.
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