GBP/USD: Bullish Resilience Evident Amid Inflation and GDP Releases

Yesterday saw the release of crucial inflation data in the United States. Despite the values aligning with expectations, it triggered a notable surge in volatility across financial markets.

Monthly CPI figures stood at 0.4%, aligning with forecasts and maintaining stability compared to previous month (0.3%) and last year (0.4%).

Today’s announcement regarding UK GDP for the month also met expectations, with a reported increase of 0.2%, recovering from the previous month’s dip of 0.1%.

Notably, despite initial downward pressure on GBP/USD following these announcements, subsequent recoveries underscored the enduring demand stability.

According to technical analysis, the GBP/USD chart reveals significant support around the 1.276 mark, evidenced by:

→ The lower boundary of the ascending channel (depicted in blue).

→ The 50% Fibonacci retracement level from impulse A→B.

→ The black long-term trend line, previously a resistance, now acting as support post-breakout on March 7.

Can the bullish momentum resume within the blue channel?

Even in pursuit of this scenario, the GBP/USD chart indicates potential challenges:

→ Potential encounters with bearish pressure, as observed in sharp price declines from top B.

→ Resistance may manifest around the 1.285 level, previously serving as local support on March 10-11, where the median line of the blue ascending channel currently resides.

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