GBPUSD’s sustained break of the one-month-old horizontal resistance, near 1.3265-70, keeps buyers hopeful ahead of the UK CPI data for February. That said, a run-up towards the 200-SMA level surrounding 1.3370 becomes imminent due to the breakout and firmer MACD signals even as RSI tests the bulls. Following that, the monthly peak of 1.3436 will challenge the cable’s advances afterward.
Alternatively, pullback moves can aim for the 100-SMA retest, around 1.3185 by the press time, a break of which will direct GBPUSD sellers toward an ascending support line from March 15, close to 1.3130 at the latest. Should the quote drop below 1.3130, the 50-SMA level surrounding 1.3100 will question the bears before directing them to the monthly low near the 1.3000 psychological magnet.
It’s worth noting that the RSI approaches overbought territory but the UK inflation data is more likely to reinforce the Bank of England’s (BOE) rate-hike concerns, which in turn keep buyers hopeful in absence of any negative surprises.