The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Tuesday, increasing the price of the pair to more than 1.2800 as the pair continues trading in a tight range after a flash crash earlier this month. The technical bias remains bearish because of a Higher Low in the recent upside move.
As of this writing, the pair is being traded near 1.2811. Support can be seen around 1.2526, a major horizontal support level. A sustained break below the 1.2088 support shall incite renewed selling pressure, validating a move towards the 1.1950, the swing low of the last major dip as demonstrated in the given below daily chart.
On the upside, the pair is likely to face a hurdle near 1.2879, the high of the recent range ahead of 1.3170, the intraday high before the recent flash crash and then 1.3446, the horizontal resistance area. The technical bias will remain bearish as long as the 1.2879 resistance area is intact.
USD Consumer Price Index
In the latest third quarter, the USD stayed 2.4 percent, equivalent to a quarter ago, to the economist forecast, released by the U.S. Department of Labor Statistics two days earlier. Not to mention, reading a consumer price index better than expected is deemed positive for the US dollar and vice versa.
Considering the overall technical and fundamental outlook, purchasing the pair on a breakout below the 1.1900 level could be a good strategy in the short to medium term. Alternatively, playing the range can also be a good option if you follow scalp trading style.