We have seen the release of a series of the UK inflation figures for November this morning. PPI and Core PPI (YoY) were lower than expectations, yet better than the previous figures. CPI and Core CPI figures were slightly higher than expectations.
GBPUSD has held above the support level at 1.2550 since 8th Dec, after a substantial fall from 6th to 8th Dec. Yesterday GBPUSD surged from the significant support level at 1.2600, touching the resistance level at 1.2700, yet retraced.
This morning the price broke the resistance level at 1.2700, testing the next resistance level at 1.2720 and retraced.
The price has been trading above the newly formed uptrend line support since yesterday.
Yet the selling pressure above 1.2700 is heavy, the bullish momentum is likely to be restrained above the level.
The 4 hourly Stochastic Oscillator is around 80, suggesting a retracement prior to the next rally.
The resistance level is at 1.2700, followed by 1.2720 and 1.2740.
The support line is at 1.2680, followed by 1.2665 and 1.2650.
Keep an eye on the US Import and Export Index figures for November (YoY and MoM), to be released at 13:30 GMT. It will likely have a moderate influence on GBPUSD.