The GBP/USD exchange rate remains under significant downward pressure, staying around the 1.2900 level early in the European trading session. According to the most recent data released by the Office for National Statistics (ONS), the annual CPI inflation rate fell to 2.8% in February. That’s down from a rate of 3% in January. This development has generated a lot of anxiety among traders, as a number of technical indicators point toward bearish trends on the horizon.
This idea of a possible bull-trap above 1.2924 Fibonacci resistance is forming a consensus on the weekly chart. The weekly Ichimoku cloud is moving up, and it perfectly engulfs the GBP/USD price as it exists now. That second development would seem to drown out positive signals. The close of the price within this cloud only adds to these bearish vibes, suggesting the need for traders to approach with care.
In addition to these technical indicators, a possible monthly bull trap is setting up above the 1.2924 Fibonacci resistance. If realized, this development would further add to negative signals for the currency pair. The supportive lines for GBP/USD are set at 1.3038 (R3), 1.3003 (R2), and 1.2973 (R1). At the same time, the pivot point (PP) is located at 1.2938. On the support side, we have 1.2909 (S1), 1.2873 (S2), and 1.2844 (S3). Additionally, the 20-day moving average (20DMA) is at 1.2883, indicating possible trading range.
Given these technical and fundamental considerations, the outlook remains bearish for the GBP/USD pair. Market movement Traders are watching these developments closely to see which direction the market moves in the future. The softening inflation rate, coupled with the presence of bearish technical indicators, indicates that further downward pressure could be on the horizon.