April 25, 2024

If GBP/USD Holds 1.2175, Pound Will Continue Growing in a Bullish Tone

As of now, the GBP/USD has entered the consolidation phase after a successful bullish run. The Thursday trading data for the pair suggests it is currently hovering within the consolidation territory.

GBP’s Wednesday Performance

On Wednesday, the pair had shown great potential as the value of GBP was gaining strength and momentum against the USD. The rally recorded for the GBP versus the USD was quite impressive.

However, as GBP entered the consolidation phase and it is currently sitting in a good spot. The GBP entered the territory just as the trading session began on Thursday.

Near-Term Technical Outlook

A look at the near-term technical outlook for the pair is quite promising and assuring for the GBP/USD supporters. Although the pair is currently within the consolidation territory, it is bound to move in the bullish direction.

The sentiments of the investors are still siding with the bullish side. They are pretty much biased with siding with the bullish outcome and are looking forward to the price of the GBP rising further.

The strong positive sentiments of the investors are still intact and they may continue protecting their sentiments with stronger buying energy.

If the investors start buying the pair, then the pair may start making a move towards the extended recovery phase. This would help the investors to defend the 1.2175 level strongly.

Soft Inflation Figures Bring the Greenback under Pressure

As the inflation figures posted by the US Feds were softer than expected, the investors have started to scale back from their bets on the USD.

This has brought the USD under great pressure, as the investors have started selling it on a higher scale. This is the reason why the trading price of the USD has become weaker in recent days.

The CPI Data was Even More Promising

If the non-farm payrolls (NFP) data was not enough, the recently shared CPI data by the US Bureau of Labor Statistics has made things quite interesting for the market.

As the data came, the investors and economists witnessed how the consumer price index came even lower than the drop expectations set by the analysts.

In the month of June, the CPI was 9.1%, while it ended up at 8.5% for the month of July. As for the Core CPI, it managed to stand its ground at 5.9%.

Still, the Core CPI was lower than what the analysts had expected for the month of July, which was 6.1%.

Initially, the odds of the 75 bps being added to the inflation rate were around 70%. However, they have shrunk down to 30%.

However, the Feds have increased the probability of the 75 bps in the inflation rate to 40%. This means that the value of the USD may recover a bit versus the GBP and other major currencies.

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