Technical Analysis: GBPUSD prints rounding bottom bullish pattern on a key day

Technical Analysis: GBPUSD prints rounding bottom bullish pattern on a key day

Despite better than forecast UK Q1 GDP figures, GBPUSD struggles amid the US dollar rebound, led by the risk-off mood. In doing so, the cable pair portrays a rounding bottom bullish chart formation on the daily play. However, traders turn cautious ahead of the key US Consumer Price Index (CPI) for fresh impulse. That said, overbought RSI and anticipated strength of the US inflation could drag the quote from 1.4165-80 immediate. Even if the quote ticks up past 1.4180, the yearly top surrounding 1.4240 could test the bulls afterward. However, a steady rise beyond 1.4240 signals the pair’s theoretical rally targeting 1.4700 round-figure.

Meanwhile, pullback moves may stall around 1.4100 and 1.4080 rest-points before revisiting the previous hurdle close to 1.4020-10 region that including multiple tops marked since early March. During the quote’s weakness below 1.4010, the 1.4000 will act as a validation point before driving bears toward the 1.3800 support convergence including 100-day SMA and ascending support line from December 11, 2020.

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