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However, the market’s reaction went favorable for the US dollar, resulting in pushing the risk assets to the downside. The GBP/USD outlook remains deteriorated after the CPI data release. The UK’s positive GDP numbers also didn’t help the pair to post a meaningful recovery.

GBP to USD Technical Outlook

The GBP/USD outlook remains feeble around the 1.3050 region. The CPI led losses hit 1.3015 but reversed the move soon creating a bullish pin bar on the 4-hour chart. However, the pair couldn’t break the high of the pin bar and stayed below the 20-period SMA.

If the low of the bullish pin bar at 1.3015 is broken, the bears may lead towards 1.3000. The previous swing low around 1.2950 is another key level that sellers could target.

Alternatively, the high of bullish pin bar is at 1.3093. If broken, the price could attempt to move above 1.3100 handle ahead of 1.3150.

Apparently, the 4-hour pin bar has paused the potential move in the pair in either direction. The succeeding candles have moved in a small range without a significant move. Hence, the market participants await a catalyst that could provide a fresh impetus to the market. This could be the retail sales data from both US and the UK and UK’s CPI data. These events are due next week and could potentially bring volatility.

On the daily chart, the price is well below the 20-day and 50-day SMAs. Meanwhile, the 100-day SMA at 1.2940 is still pointing upwards but could become the next key level for the sellers. All the three SMAs on the chart have formed a bullish channel. The broader outlook still remains with the buying bias. However, if the price breaks 1.3000, the bearish trend may gather further traction resulting in a major downside move.

On the flip side, consolidation around the current levels may create doubts among the sellers that could boost the pound. The ejection of sellers may bring a fresh up wave. However, this won’t be a smooth ride either. The volatile nature of the currency can trigger a whipsaw movement as well.