GBP/USD Choppy Session Continues – Why Could $1.1200 Drive Uptrend?

The cost of living in the United Kingdom, as reflected by the Consumer Price Index (CPI), is due early on Wednesday at 06:00 GMT. Given the recently announced underwhelming employment statistics, as well as the Bank of England’s (BOE) preparation for Quantitative Tightening (QT), GBP/USD traders will be eagerly watching today’s British inflation data.

The subject line CPI inflation is predicted to return to a 30-year high of 10.0% YoY versus 9.9% previously, while Core CPI, which includes volatile food and energy goods, is expected to increase slightly to 6.4% YoY during the indicated month, up from 6.3% previously.

In terms of monthly numbers, the CPI could fall to 0.4% from 0.5% previously. It’s worth mentioning that the recent wage pressure and buoyant jobs report emphasizes the Producer Price Index (PPI) as a significant driver for the GBP/immediate USD’s direction. However, the PPI Core Output YoY may fall to 12.7% from 13.7% on a non-seasonally adjusted basis, while monthly prints may grow to 0.9% from 0.3% previously.

Furthermore, the Retail Price Index (RPI) is set to be released, with a 0.5% MoM drop from the previous reading of 0.6%, while the 12.3% YoY figure is projected to remain steady.

GBP/USD Technical Outlook

The GBP/USD pair is consolidating above the support line of the bullish channel. The EMA50 provides constant positive support, and stochastic is now sending out new positive signals. This means that the price should resume the bullish wave and head towards our next targets, which start at $1.1490 and go up to $1.1660.

As a result, we will continue to recommend a bullish trend for the foreseeable future, noting that a breach of $1.1305 followed by $1.1270 will halt the predicted climb and pressure the price to fall.

Today’s trading range is predicted to be between 1.1270 support and 1.1430 resistance.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

USD/JPY Climbs Toward 147 as BoJ Hawkish Tone and Fed Rate Bets Diverge

2 days ago

Save

AUD/USD Bounces on Jobs Surge, but $0.6390 Breakdown Threatens Reversal

2 days ago

Save

USD/CAD Price Holds Above 1.3950 as Fed Cut Bets Grow, Oil Prices Limit CAD Gains

2 days ago

Save

Comments

Leave a Reply Cancel reply

You must be logged in to post a comment.