GBPUSD pair is currently trading at 1.29077, showing signs of a pullback after reaching recent highs. The chart displays a clear uptrend since January, with price action forming a series of higher lows and higher highs, though the pair has recently encountered resistance.

The currency pair is currently hovering around the 38.2% Fibonacci retracement level at 1.28379, having pulled back from its recent peak. Significant support lies at the 50% retracement (1.27828) and 61.8% retracement (1.27276) levels, which could act as potential bounce zones if the current pullback extends.

The primary trend remains bullish, evidenced by price trading above both the ascending trend line (black) that has been in place since January and the key moving averages (blue and red lines). However, the recent price action suggests a consolidation or minor correction phase may be underway.

The price is currently testing the shorter-term 100 SMA (blue line), which has acted as dynamic support throughout the uptrend. The longer-term 200 SMA (red line) continues to slope upward, confirming the overall bullish bias in the market.

The stochastic oscillator in the lower panel shows that the pair is moving away from overbought conditions, with readings recently declining from above 80. This suggests momentum may be slowing in the short term, potentially supporting the case for continued consolidation.

GBPUSD took hits upon seeing weaker than expected UK CPI, which fueled the case for another round of BOE easing in their next policy statement. Note that the latest BOE decision featured a less dovish MPC turnout, as only one member voted to cut rates while the rest called for no change in policy.

Meanwhile, the dollar is finding support from stronger than expected US durable goods orders, as well as a return in risk aversion on account of Trump’s tariffs on auto imports. Fears of further trade uncertainty are keeping riskier currencies on the back foot as well.