Technical Analysis: GBPUSD

GBPUSD hit a two-week low

On Wednesday, GBPUSD fell from a high level. It hit 1.2874 at one point, which marked the lowest level since 11^th March.

UK inflation declined in February 

UK CPI, y/y (February) fell from 3.0% to 2.8% Vs. 3.0% (forecast), according to the data from the Office for National Statistics on Wednesday. As the inflation declined, the expectation that the Bank of England will cut the interest rate in May rose.

The USDX rose to a three-week high

On Wednesday, the USDX was prone to fluctuation and climbed. It rose to a three-week high. It ended up 0.43% at 104.67.

Technically speaking, the bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, GBPUSD fell from a high level. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that GBPUSD will fall further. Investors should focus on whether GBPUSD will break through the support at 1.286. It will decline further with potential support at 1.272 if it breaks below 1.286.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and dipped in the short term. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that GPBUSD will fall further. Investors should focus on whether GBPUSD will break through the resistance at 1.293. It will decline further if it rebounds but is capped at 1.293.

Key resistance: 1.293,1.297

Key support: 1.286,1.272

Generally speaking, GBPUSD is more likely to dip further in the short term. Investors should focus on US economic data during the day.