The GBPUSD pair remains in a favorable position above 1.2760, benefiting from the UK inflation figures.

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• GBP/USD holds positive ground above 1.2760, supported by the UK inflation data.

The pair currently trades last at 1.27634.

The previous day high was 1.2788 while the previous day low was 1.2703. The daily 38.2% Fib levels comes at 1.2755, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2735, expected to provide support.

The GBP/USD pair gains momentum and surges above mid-1.2750s during the early Asian session on Friday. The major pair currently trades near 1.2761, up 0.11% for the day. The strengthening of the Pound Sterling is bolstered by the inflation report and the probability of further interest rates by the Bank of England (BoE).

On Wednesday, the UK’s National Statistics revealed that the nation’s Consumer Price Index (CPI) MoM came in at -0.4%, beating market estimation of -0.5% versus the previous reading of 0.1%. The annual British CPI inflation rose 6.8% for June, as expected at 6.8%. The core CPI, which excludes volatile oil and food prices for July, increased by 6.9%, above the estimated 6.8%.

The core CPI data has raised concerns about persistent inflation in the UK economy, which may lead the BoE to keep raising interest rates. This, in turn, supports the Pound Sterling and acts as a tailwind for the GBP/USD pair.

The number of unemployment claims fell for the week ending on August 12, indicating that the labor market remains tight. The figures strengthen the case for another interest rate rise by the Federal Reserve (Fed). FOMC Minutes emphasized on Wednesday that inflation remained unacceptably high and it may need additional tightening of monetary policy to bring inflation to the longer-run target.

That said, the number of jobless claims declined to 239K for the week ending on August 12. The figure came in slightly below the market expectation of 240K, the US Bureau of Labour Statistics (BLS) reported on Thursday. Meanwhile, the Continuing Jobless Claims rose to 1.716 million. Finally, the Philadelphia Federal Reserve’s Manufacturing Survey for August improved to 12, above the market consensus of -10 and -12 prior.

The UK Retail Sales data will be the key event on Friday. The monthly figure for July is expected to drop by 0.5%. Next week, market players will shift their focus to the Purchasing managers’ indexes (PMI) data from both UK and US. Investors will take cues from the data and find opportunities around the GBP/USD pair.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2764 at the time of writing. Pair opened at 1.2747 and is trading with a change of 0.13 % .

The pair is trading below its 20 Daily moving average @ 1.2772, below its 50 Daily moving average @ 1.2785 , above its 100 Daily moving average @ 1.2624 and above its 200 Daily moving average @ 1.2375

The previous day high was 1.2788 while the previous day low was 1.2703. The daily 38.2% Fib levels comes at 1.2755, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2735, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2704, 1.2661, 1.2619
• Pivot resistance is noted at 1.2789, 1.2831, 1.2874

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