Key Points
- The British Pound started a recovery from the 1.2900 swing low against the US Dollar.
- The GBPUSD pair recently broke a bearish trend line with resistance at 1.2940 on the hourly chart.
- In China, the Consumer Price Index was released for April 2017 by the National Bureau of Statistics of China.
- The result was above the forecast, as there was an increase in the CPI (MoM) by 0.1%, more than the forecast of 0%.
GBPUSD Technical Analysis
The British Pound after a decline towards 1.2900 against the US Dollar found support and traded higher. A low was formed at 1.2906 in GBPUSD, and then the pair moved above the 38.2% Fib retracement level of the last decline from the 1.2986 high to 1.2906 low.
The pair also managed to move above the 21 hourly simple moving average and a bearish trend line with resistance at 1.2940 on the hourly chart.
At the moment, the pair is attempting a close above the 61.8% Fib retracement level of the last decline from the 1.2986 high to 1.2906 low at 1.2955. If it succeeds, there can be further gains towards 1.2980 in the near term.
Chinese Consumer Price Index
Recently in China, the Consumer Price Index was released for April 2017 by the National Bureau of Statistics of China. The forecast was lined up for the CPI to remain flat at 0% in April 2017, compared with the previous month.
The result was a bit better than the market forecast, as there was an increase in the CPI (MoM) by 0.1%, more than the forecast of 0%. In terms of the yearly change, Chinese CPI increased by 1.2% in April 2017, which was a lot better compared with the forecast of 1.1%.
Overall, the market sentiment is improved and there are chances of GBPUSD moving towards 1.2980 or even 1.3000.
