- – The British Pound recovered well from the 1.2365 low against the US Dollar.
- – The GBP/USD pair is currently facing a major bearish trend line with resistance at 1.2435 on the hourly chart.
- – Earlier today, the UK Consumer Price Index for March 2017 released by the National Statistics posted a rise of 2.3% (YoY).
UK Consumer Price Index
Today in the UK, the Consumer Price Index for March 2017 was released by the National Statistics. The market was positioned for the retail prices of a representative shopping basket of goods and services to increase by 2.3% in March 2017, compared with the same month a year ago.
The outcome was in line with the forecast, as the Consumer Price Index rose 2.3% in March 2017. In terms of the monthly change, the CPI was supposed to increase by 0.3% in March 2017. However, the increase was 0.4%, which was less than the last increase of 0.7%. The report stated “Rising prices for food, alcohol and tobacco, clothing and footwear, miscellaneous goods and services were the main upward contributors to change in the rate. These were largely offset by a downward contribution from transport, particularly air fares and, to a lesser extent, motor fuels.”
It looks like the recent positive report may lift the GBP/USD higher, and the pair could even break the 1.2435 resistance for further gains.
GBP/USD Technical Analysis
The British Pound faced a lot of pressure lately, as it moved towards 1.2360 against the US Dollar. The GBP/USD pair traded as low as 1.2365 from where it started a recovery. The pair traded higher and moved above the 23.6% Fib retracement level of the last decline from the 1.2505 high to 1.2365 low.
However, the pair is facing a major hurdle near 1.2435-1.2440. The 1.2435 resistance coincides with a major bearish trend line on the hourly chart, and the 50% Fib retracement level of the last decline from the 1.2505 high to 1.2365 low. It was also a pivot earlier, so it won’t be easy for buyers to break 1.2440 in the near term.
More importantly, the 100 hourly simple moving average is also near 1.2440. So, if the pair breaks 1.2440, it could open the doors for more gains towards 1.2500.Tags: British Pound, GBP/USD Technical Analysis, US Dollar