The Pound Sterling ended the week almost flat against the United States Dollar (USD), having reversed a temporary pullback seen a week before. The GBP/USD pair struggled amid unabated US Dollar demand. The pair's traders now gear up for next Tuesday's United States Consumer Price Index (CPI) for fresh trading directives.

GBP/USD managed to reclaim the critical 200-Daily Moving Average (DMA) support-turned-resistance near 1.1900.

Note that the pair hovered below the latter for the most part of the week, with risks still skewed to the downside.

The 14-day Relative Strength Index (RSI) is prodding the 50.00 level, suggesting that GBP/USD could be on a sustained recovery path.

Adding credence to the bullish potential, the bullish 100 DMA has pierced through the downward-sloping 21 DMA from below, implying a bull cross confirmation.

On the road to recovery, GBP/USD will need to find a strong foothold above the confluence of the 21 and 100 DMAs near 1.2010.

Buyers could then target the flattish 50 DMA at 1.2127 once the pair stabilizes above 1.2100. The next relevant upside targets are envisioned at the 1.2200 static resistance and the Valentine's Day high of 1.2270.

On the flip side, acceptance below the 200 DMA once again will reopen the downside toward Thursday's low at 1.1832, below which the YTD low at 1.1803 could be retested.

A sustained move below the latter will initiate a fresh downswing toward the 1.1770 static support, below which the November 11 low at 1.1648 will be threatened.

Hence, the one-week average target is likely to be outdated already. The one-month outlook remains slightly bearish, with the average stop loss sitting at 1.2058.

US CPI on Tuesday can strengthen the bulls on GU

Mar 12 2023

Stop Loss -0.37%

Holding time 0hr

1.20307

Entry price

1.20750

Stop loss price