- December 11, 2024
- Posted By: mia
- Category: Market News
CPI Data and GBPUSD H4 Chart: What’s Next?
The GBPUSD forex pair, also known as “Cable” due to its historical trading via transatlantic telegraph cables, represents the exchange rate between the British Pound and the US Dollar. This major currency pair is influenced by both countries’ macroeconomic indicators, central bank policies, and geopolitical factors. Traders and investors closely monitor GBPUSD due to its volatility and liquidity, making it a favorite for both technical and fundamental analysis.
For today’s GBP/USD fundamental analysis, the market is set to be influenced by key economic data releases from both the US and the UK. In the US, the Consumer Price Index (CPI) and Core CPI reports will be closely monitored as they provide critical insights into inflation trends and the Federal Reserve’s next moves on interest rates. Strong CPI data could boost the USD by signaling a higher probability of continued monetary tightening. On the UK side, the Gilt Auction results will offer clues about investor confidence and borrowing costs, which could impact the Pound’s strength. The combination of these events sets the stage for significant volatility, with inflation, bond yields, and monetary policy expectations driving the GBP/USD forecast today.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The GBPUSD H4 chart highlights an ascending channel, suggesting Cable’s bullish bias in the short to medium term. The price is trading near the upper boundary of the channel, indicating potential resistance at these levels. The Parabolic SAR confirms this trend, with its dots aligning below the candles, supporting continued upward momentum. However, the RSI stands at 59.25, reflecting neither overbought nor oversold conditions, but signaling caution as the pair’s price action approaches resistance. A breakout above the channel could trigger further bullish moves, while a reversal might prompt a retest of lower support zones. Traders should watch for confirmation before acting.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.