GBP/USD Capped Under 200-Day EMA After Soft US Inflation Print
The British pound briefly rallied on the softest US inflation print in six years but remains capped under the 200-day EMA near 1.3400, which has resisted all recovery attempts.
Cable traded just below the 1.3400 handle late in Tuesday's session, pinned under a 200-day Exponential Moving Average (EMA) that sits a few pips shy of the figure. The 200-day EMA has capped every recovery attempt for the pair.
The move came after the softest US inflation print in six years, which briefly boosted the British pound. However, the gains were short-lived, with GBP/USD unable to overcome the technical resistance.
Traders will watch for a decisive break above the 200-day EMA to confirm further upside, but for now, the pair remains range-bound near the psychological 1.3400 level.
Source: FXStreet Forex News