GBPUSD: Keep an Eye on 1.2710

·    May 15, 2024

·      May 15, 2024

·    May 15, 2024

GBPUSD is up today on a slightly cooler US Consumer Price Index (CPI) reading, but is it sustainable?

Today, I’ll share the GBPUSD area to watch this week, which lines up with a critical level on the US Dollar Index (DXY).

Let’s get started!

GBPUSD is up today following a slightly cooler print from US CPI.

However, it’s not as big of a miss as some were expecting, and US inflation remains well above seasonally adjusted averages.

As for the pound, bulls managed an initial 60-pip surge following today’s CPI prints, but the pair has retreated some since.

Like the EURUSD that I discussed on Tuesday, I’m not overly interested in trading GBPUSD until we see a sweep of range resistance.

Currently, that level lies at 1.2710.

With that said, there’s a well-established descending trend line from several 2021 highs that comes in closer to 1.2800.

It’s unclear whether we’ll see GBPUSD trend that high, but a 1.2800 retest would put the DXY below its 2024 ascending channel.

For now, all eyes are on a DXY 104.00 retest, which will likely coincide with the GBPUSD testing or even sweeping those 1.2710 highs.

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