Technical analysis: GBP/USD ahead of CPI data

<img width="250" height="151" src="https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-250×151.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="Daily Market Commentary" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-250×151.jpg 250w, https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-700×422.jpg 700w, https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-768×463.jpg 768w, https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-120×72.jpg 120w, https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2022/05/British-pound-500×301.jpg 500w, https://www.leaprate.com/wp-content/uploads/2022/05/British-pound.jpg 880w" sizes="(max-width: 250px) 100vw, 250px" /><p>On the daily timeframe, however, support is not visible until $1.2665, indicating that further downside could be seen for the pair. In terms of resistances, $1.3001 calls for attention on the daily timeframe, followed by weekly resistance at $1.3134.</p>
<p>From the H1 chart, the US cash open welcomed an AB=CD harmonic support level at $1.2722 (denoted by a 100% projection ratio), which happens to be complemented by nearby 38.2% and 61.8% Fibonacci retracement ratios at $1.2712. A reaction, as you can see, has already occurred. In line with weekly price testing potential support, this may lead H1 harmonic traders to plot upside objectives, consisting of 38.2% and 61.8% Fibonacci retracement ratios derived from legs A-D at $1.2766 and $1.2798, respectively. Usually, you’ll also find that traders reduce risk to breakeven at the 38.2% ratio and liquidate a portion of the position and hold in the hope of reaching the 61.8% ratio as a final profit objective.</p>
<p><img decoding="async" class="alignnone wp-image-27000 size-full" src="https://www.fpmarkets.com/blog/wp-content/uploads/2023/06/GBPUSD_2023-06-20_16-35-13.png" sizes="(max-width: 2445px) 100vw, 2445px" srcset="https://www.fpmarkets.com/blog/wp-content/uploads/2023/06/GBPUSD_2023-06-20_16-35-13.png 2445w, https://www.fpmarkets.com/blog/wp-content/uploads/2023/06/GBPUSD_2023-06-20_16-35-13-300×152.png 300w, https://www.fpmarkets.com/blog/wp-content/uploads/2023/06/GBPUSD_2023-06-20_16-35-13-768×389.png 768w, https://www.fpmarkets.com/blog/wp-content/uploads/2023/06/GBPUSD_2023-06-20_16-35-13-1024×519.png 1024w" alt="GBP/USD Ahead of CPI Data, FP Markets" width="2445" height="1240" />Charts: TradingView</p>
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<p><em><strong>Disclaimer</strong>: The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.<br />
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<p><em>Opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.</em></p>
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<p>The post <a rel="nofollow" href="https://www.leaprate.com/forex/market-news/technical-analysis-gbp-usd-ahead-of-cpi-data/">Technical analysis: GBP/USD ahead of CPI data</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>