GBPUSD Key Levels to Watch Ahead of US Inflation Data

GBPUSD remains range-bound but is coming off a critical level I discussed last weekend.

In today’s video, I discuss what GBPUSD needs to do to target range lows, and what could trigger another rally.

I also share the latest on the US Dollar Index (DXY).

Let’s get started!

Much of the Forex market remains idle, with FX volatility dropping to multi-month lows.

That’s evident by GBPUSD, which has been range-bound since late November.

While sideways markets can be frustrating for some, it’s important to understand current conditions so you can trade accordingly.

As for GBPUSD, the pound is coming off descending channel resistance at 1.2700.

I mentioned this level last week and again in Saturday’s weekly forecast.

However, conviction levels across FX remain low, and GBPUSD is no exception.

The pair is catching a bid today from 1.2630, and the DXY is struggling to hold today’s gains.

If this is a swing high for GBPUSD, the pair should break and hold below the 1.2630 area in the coming days.

The DXY will also need to reclaim the 104.45 region on the higher time frames.

On the flip side, a sustained break above the GBPUSD 1.2700 highs would be bullish for the pound, especially if the DXY is breaking below 103.50.

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