The GBP/USD pair saw a sharp increase as US inflation fell short of expectations while the UK economy surpassed forecasts. This led to the GBP/USD trading at 1.2927, up by 0.62%.
Technically, the outlook for GBP/USD remains bullish, with the Relative Strength Index (RSI) signaling potential for further gains, although it is approaching overbought levels.
Key resistance levels for the pair are at 1.2950, 1.2995, and 1.3142. In case of a pullback, support levels are seen at 1.2894, 1.2860, and 1.2800.
If GBP/USD surpasses 1.2950, it could test the July 27, 2023, peak of 1.2995, and potentially reach 1.3000 and 1.3142.
On the downside, a drop below 1.2900 could signal a pullback, with support levels at 1.2894, 1.2860, and 1.2800.
The Pound Sterling’s strength was evident against major currencies, with the British Pound being the strongest against the US Dollar on that day.