Throughout the trading on Tuesday, the GBPUSD unit ends a two-day negative run. The duo’s recovery is aided by the falling US currency and weaker US government debt rates. The key currency is trading around 1.2653, rising 0.05 percent today.

Key points and Consideration

The British pound has recovered in advance of British inflation figures.

Because of the Bank of England’s restrictive monetary policy, prices in the United Kingdom is expected to decline more.

Broadbent of the Bank of England focuses on salary growth-related price increases.

The (GBP) has resumed its upward trend before of the announcement of the UK’s (CPI) for Nov on December 20th. Markets expect British overall and core inflation to fall more in Nov as rising rates of interest. Which restrict family spending on essential items. Due to the declining local and worldwide economies, manufacturer gate pricing is expected to fall.

The GBPUSD unit is recovering on forecasts that weaker inflation numbers wouldn’t be enough. That may convince BoE officials to abandon their “adequately stringent” fiscal policy position. As well as raise optimism for further reductions in rates in 2024. The British economy has the greatest inflation rate amongst nations in the West. Therefore, a request to adopt a dovish posture might rev upward the price indexes once more.

GBPUSD Technical Analysis

Following a sharp drop from a nearly 4 -month top of 1.2800. The sterling has found intermediate supports around 1.2630. The GBPUSD unit is in an uptrend as it forms an upside-down Cup and Handle graph formation. A convincing breach over the grip barrier of 1.2800 could unlock the door to further advances. Beyond the psychological barrier of 1.3000 zone. The 20 (D-EMA) at 1.2600 will almost certainly persist backing the pound’s bullish.

Support and Resistance Levels

R3 = 1.2767 R2 = 1.2735 R1 = 1.2691 PP = 1.2660 S1 = 1.2616 S2 = 1.2585 S3 = 1.2540

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