Daily Analysis : GBPUSD ( 14 Dec 2022 )

Pound rose with US inflation data and is hovering around 1.2360. DXY fell sharply and supported cable. Early morning, CPI data will be announced in UK. Cable traders are looking forward annual inflation level and BoE’s decision on Thursday. Market expectations for November are 10.9% slowdown in inflation. However, FED’s decision could weigh on cable prices. Risk appetite may reach higher level with FED’s signals about when will start to reducing rates.

On the daily chart of the pound, above 1.2115 (200-DMA) level the momentum will be positive. The daily RSI (14) is very close to overbought condition. On the downside, the key support is still at 1.2250. If that level breaks down, the next support will be at 1.2150. On the upside, the resistance at 1.2450, then at 1.2540.

Support: 1.2250 – 1.2150 – 1.2115
Resistance: 1.2450 – 1.2540 – 1.2640