GBP/USD marching firmly after forming a triple-bottom formation, targets 1.3300 post US CPI


  • The US Consumer Price Index (YoY) for November closes to 7%, ahead of the Fed’s last meeting of the year.
  • The market sentiment is a mixed-bag, though risk-sensitive currencies like the GBP rise.
  • GBP/USD Price Forecast: A triple-bottom in the 1-hour chart targets 1.3300.

The British pound is barely flat as Wall Street opens, up some 0.07%, trading at 1.3230 at the time of writing. The awaited US inflation figures were released, spurring a jump in US equity markets, despite the downbeat market sentiment in the Asian and European session.

Inflation in the US hits a 30-year high

Before the Wall Street open, the US Bureau of Labor Statistics (BLS) unveiled that the Consumer Price Index for November on a YoY reading increased by 6.8%, as foreseen by analysts, though higher than October’s 6.2%. Meanwhile, the Core Consumer Price Index for the same period, which excluded volatile items like food and energy, came at 4.9%, as widely expected, trailed by October’s figure, which increased up to 4.6%.

The high reading emphasized the posture adopted by the Federal Reserve. In the last week, Fed’s policymakers expressed the need to increase the QE’s reduction speed so that the central bank could have room to act as needed. Also, on Monday of the last week, Fed’s Chairman Powell pivot from a dovish stance to a hawkish one, as he reiterated that inflation is no longer transitory, and he coincides with Fed’s Bullard, Bostic, Daly, among others, that a faster bond taper is required.

In the meantime, after shrugging off the initial reaction to the inflation report, US T-bond yields extend their fall, with 2s, 5s, and 10s, down between 1.5-2.0 basis points, sitting at 0.6624%, 1.2386%, and 1.472%, respectively. Further, following the US Treausires footsteps, the US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, slides 0.10%, down to 96.16, at press time.

GBP/USD Price Forecast: Technical outlook

The GBP/USD in the hourly chart shows that GBP buyers defended the 1.3187 level two-previous times in the last three days, meaning that once the downward move broke the 1.3200 figure, it was quickly rejected, reclaiming the 1.3200 handle. Consequently, that has formed a triple-bottom formation that has bullish implications.

At press time, the GBP/USD is also breaking above the confluence of the 50 and the 100-hour simple moving averages (SMA’s), another signal.

The first resistance level would be the R1 daily pivot at 1.3237. A breach of the latter would expose a confluence area around the R2 daily pivot and the 200-hour SMA in the 1.3255-60 range, that once broken, would give way to the R3 daily pivot at 1.3290.

On the flip side, the 1.3200 figure would be the first support. A break of the figure would expose the 1.3187 daily low, followed by the YTD low at 1,3160.

GBP/USD

Overview
Today last price 1.323
Today Daily Change 0.0009
Today Daily Change % 0.07
Today daily open 1.3221
 
Trends
Daily SMA20 1.3341
Daily SMA50 1.3524
Daily SMA100 1.365
Daily SMA200 1.3788
 
Levels
Previous Daily High 1.323
Previous Daily Low 1.3171
Previous Weekly High 1.3371
Previous Weekly Low 1.3194
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3193
Daily Fibonacci 61.8% 1.3207
Daily Pivot Point S1 1.3184
Daily Pivot Point S2 1.3148
Daily Pivot Point S3 1.3125
Daily Pivot Point R1 1.3243
Daily Pivot Point R2 1.3266
Daily Pivot Point R3 1.3302

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

AUD/USD: No respite to the selling pressure

AUD/USD: No respite to the selling pressure

AUD/USD remained well on the defensive, trading in a volatile fashion that saw spot surpass the 0.6100 hurdle just to fade that uptick afterwards and revisit the 0.5980 towards the end of the NA session.

AUD/USD News
EUR/USD: Tariffs keep the sentiment subdued

EUR/USD: Tariffs keep the sentiment subdued

EUR/USD added to Friday’s pullback and revisited the sub-1.0900 area, or two-day lows on the back of further gains in the US Dollar and the widespread demand for the safe-haven universe.

EUR/USD News
Gold recedes to four-week lows near $2,950

Gold recedes to four-week lows near $2,950

The persistent selling pressure is now dragging Gold prices to the area of fresh multi-week troughs near the $2,950 mark per troy ounce, always amid the continuation of the recovery in the US Dollar, highr US yields across the curve and unabated tariff tensions.

Gold News
Binance founder CZ becomes strategic advisor to Pakistan's Crypto Council

Binance founder CZ becomes strategic advisor to Pakistan's Crypto Council

The Pakistan Crypto Council appointed Binance founder and former CEO Changpeng Zhao (CZ) as a strategic advisor on Monday to provide guidance on crypto infrastructure, education and adoption for the Pakistani government and private companies.

Read more
Strategic implications of “Liberation Day”

Strategic implications of “Liberation Day”

Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025