GBPUSD HIGHER ON ABOVE EXPECTATION INFLATION DATA

The GBPUSD pair has met with strong buying interest in the European session, trading nearly 100 pips above the daily low at 1.2731, moving closer to former support now turned resistance at 1.2740.

The Pound received a boost from CPI data earlier, showing that UK inflation rose by 0.3% on a monthly basis, above the forecasted figure of 0.2%.

The main event for the Pound today remains the upcoming news coming out from the Conservative Parties meeting with the Democratic Unionist Party, as they attempt to form a coalition government.

Technically the pair remains short term bullish above the 1.2710 and the calculated daily pivot point at 1.2695.

Buyers remain in control, targeting 1.2740 and the cluster of key resistance points between 1.2770 to 1.2790.

Medium term time frame indicators confirm the 1.2740 as critical resistance, with H4 time frame 50 and 100 period moving averages lending resistance further up at 1.2833 and 1.2870.