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\n Share:<\/span><\/p>\n The GBP\/USD pair attracts some dip-buying during the Asian session on Wednesday and for now, seems to have stalled the previous day’s sharp pullback from the vicinity of the 1.2700 mark, or over a one-week top. The uptick, however, lacks bullish conviction, with spot prices struggling to capitalize on the move beyond the 1.2600 round figure ahead of the UK CPI<\/a> report.<\/p>\n In the meantime, growing acceptance that the Federal Reserve (Fed) will keep rates higher for longer, bolstered by the hotter-than-expected US consumer inflation data on Tuesday, is seen underpinning the US Dollar<\/a> (USD) and capping the GBP\/USD pair. The downside, however, remains cushioned in the wake of reduced bets for early interest rate cuts by the Bank of England<\/a> (BoE), which might continue to act as a tailwind for the British Pound (GBP).<\/p>\n From a technical perspective, the 100-day Simple Moving Average (SMA), around the 1.2570-1.2565 region, should protect the immediate downside. A convincing break below will make the GBP\/USD pair vulnerable to challenge the 200-day SMA, pegged near the 1.2500 psychological mark. With oscillators on the daily chart<\/a> holding in the negative territory, some follow-through selling will be seen as a fresh trigger for bearish traders.<\/p>\n The GBP\/USD pair might then accelerate the downward trajectory further towards the next relevant hurdle near mid-1.2400s before dropping to the 1.2400 round-figure mark and the 1.2375 horizontal support.<\/p>\n On the flip side, any subsequent move up is likely to confront stiff resistance near the 1.2625-1.2630 region, above which bulls might aim back towards conquering the 1.2700 mark. The latter should act as a key pivotal point, which if cleared decisively should lift the GBP\/USD pair<\/a> back towards the 1.2750 supply zone. The momentum could extend further towards the 1.2800 mark en route to the 1.2825-1.2830 area or a multi-month top touched in December.<\/p>\n\n
GBP\/USD daily chart<\/h2>\n