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Yesterday important data on inflation in the United States was published. It caused a significant spike in volatility in financial markets, even though the values were in line with expectations. CPI in monthly terms: actual = 0.4%, forecast = 0.4%, a month ago = 0.3%, a year ago = 0.4%.
And today news came out about UK GDP in monthly terms, which also corresponded to expectations: fact = +0.2%, forecast = +0.2%, a month ago = -0.1%.
It is noteworthy that in both cases the first reaction was a fall in the price of GBP/USD, but then a recovery followed — this is a manifestation of the stability of demand.
From the point of view of technical analysis of the GBP/USD chart, the market has support in the area of 1.276 from:
→ the bottom line of the ascending channel (shown in blue);
→ Fibo level 50% rollback from impulse A→B;
→ the black long-term trend line originating at the end of 2023, which previously served as resistance, but changed its role after the breakdown on March 7.
Will the bulls be able to resume the upward trend within the blue channel?
Even if attempts to implement this scenario occur, the GBP/USD chart shows that:
→ In this case, they may encounter bearish aggression, visible in sharp price declines from top B.
→ It is possible that resistance will be the level of 1.285, which served as local support on March 10-11, and in the area of which (for now) the median line of the blue ascending channel passes.
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