GBP/USD Retreats Below 1.25 but MAs Hold As Support
We are seeing some strong bullish reversing signs in GBP/USD this month, after this forex pair remained bearish for a few months until the beginning of October, almost reaching 1.20. During October we saw some consolidation above that major level, while in November buyers are trying to take control of this pair, although it’s more complicated than it looks.
The UK economy is in recession, which has kept the GBP weak. In the last attempt to reverse the trend, buyers failed to break above the 200 SMA (purple). But they pushed the price abov this moving average yesterday after the soft US inflation report for October, although the 100 SMA (green) turned into resistance as traders were waiting for the US retail sales today, which came btter than expected.
The UK CPI inflation numbers which were released this morning were softer than expected, as shown below. So, the 100 SMA is rejecting the price right now for GBP/USD , although thw 200 SMA might be turning from resistance into support, which is a bullish sign.
US Consumer Price Index Report by ONS – 15 November 2023
- October CPI +4.6% vs +4.8% expected
- September CPI was +6.7%
- CPI MoM 0.0% vs +0.1% expected
- Prior CPI MoM +0.5%
- Core CPI YoY +5.7% vs +5.8% expected
- Prior core CPI YoY +6.1%
- Core CPI MoM +0.3% vs +0.4% expected
- Prior core CPI MoM +0.5%
GBP/USD Live Chart
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