STERLING BULLISH ONCE ABOVE THE 1.3047 LEVEL
The GBPUSD pair is attempting to recover Tuesday's trading losses and retake the 1.3047 level, after creating a bullish double bottom price pattern, during the early European session.
Sterling came under heavy selling yesterday, and briefly traded below the weekly pivot point, finding a price bottom at 1.3005. Weaker than expected UK inflation figures, and dovish remarks on inflation from Bank of England Governor, Mark Carney cast doubts over a rate hike from the BOE during the third fiscal quarter of 2017.
Sterling remains bullish in the medium term whilst trading above the 1.3010 level, however, the GBPUSD pair is bearish in the short term, whilst trading under the May 18th former price high, located at 1.3047.
Key technical GBPUSD support is found at the H1 time frame, 100 period moving average, at 1.3028. The weekly pivot point acts as critical support, at 1.3010. Support below the 1.3000 level comes from the daily time frame, 20 period moving average, at 1.2963.
Key upside resistance is found at the daily pivot point, at 1.3058. Further GBPUSD upside resistance is found at the 1.3089 level, and the current 2017 price high, at 1.3125.