The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Tuesday, increasing the price of GBPUSD to more than 1.2550 ahead of the US consumer confidence news. The technical bias has turned bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.2572. A support can be noted around 1.2562 (an immediate trendline support) ahead of 1.2519 (the 50% fib level) and then 1.2500 (the confluence of lower trendline as well as horizontal support area) as demonstrated in the given below hourly chart.

On the upside, a hurdle may be noted around 1.2581 (the trendline resistance area as demonstrated with pink color in the above chart) ahead of 1.2614 (the high of recent upside wave) and then 1.2700 (the psychological number). The technical bias shall remain bullish as long as the 1.2500 support area is intact.

US Consumer Confidence

The Consumer Board of the United States is due to release the consumer confidence data today. According to the average forecast of different economists, the consumer confidence registered a reading of 113.8 points in March as compared to 114.8 points in the month before. The Consumer Confidence released by the Conference Board captures the level of confidence that individuals have in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. Generally, a high reading is also positive for the USD, while a low reading is negative.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.