GBPUSD – bulls lose traction on approach to 1.30 barrier; US CPI in focus for fresh signals

Cable eases from new 15-month high (1.2969), posted in late Asian trading on Wednesday, as bulls faced headwinds on approach to psychological 1.30 barrier, due to overbought daily studies.

Wednesday’s action was so far shaped in a shooting star candlestick, which usually signals reversal when on top of an uptrend, generating initial signal of potential reversal, which will need a verification on completion of the pattern.

The signal is negative, but it collides with overall bullish structure and expectations for upbeat US inflation report, which may offer fresh support to sterling on weaker than expected June figures and lift pound through 1.30 barrier for the first time since Apr 2022.

Former top (1.2848) turned to solid support, with deeper pullback expected to find firm ground above rising daily Tenkan-sen (1.2784) to keep near-term bias with bulls.

Res: 1.2969; 1.3000; 1.3045; 1.3105
Sup: 1.2900; 1.2848; 1.2800; 1.2784