GBP/USD – The Pair Giving Mixed Signals as It Awaits UK Inflation Data
Bullish View
- Buy Stop: 1.2271
- Take Profit: 1.2350
- Stop Loss: 1.2110
- Timeline: 1-2 days
Bearish View
- Sell Stop: 1.2135
- Take Profit: 1.2050
- Stop Loss: 1.2235
The GBP/USD pair initially pulled back after strong US inflation and UK employment data. As of now the pair is awaiting key economic data releases which includes the UK inflation data. The BOE is expecting the inflation to remain high as they have already signalled another interest rate hike before taking a strategic pause. The US retail sales data will also have some influence on the cable pair prices.
Talking about technical analysis, the pair was seen forming a spinning top candlestick after major data releases about US inflation and UK job numbers. This kind of movement usually means a bearish signal in price action and the pair has also slightly moved above the 25-period EMA. A movement above the upper side of the spinning top at 1.2271 resulting in a double bottom pattern would hint at a bullish breakout. But a movement below the support at 1.2118 can be taken as a bearish signal. So, we still don’t have much clarity at the moment with the mixed signals given by the charts.
