GBPUSD Price Analysis: Eases from five-month-old resistance ahead of UK inflation

• GBPUSD remains sidelined after reversing from a three-month high.
• A multi-day-old resistance line challenge buyer amid nearly overbought RSI.
• Sellers need validation from 61.8% Fibonacci retracement level, 100-DMA.
• 200-DMA, highs marked in August act as extra upside filters.

GBPUSD bulls run out of steam as traders await the key UK inflation numbers during early Wednesday. While portraying the sentiment among the Cable pair traders, the quote retreats from a downward-sloping resistance line from June 15 amid a nearly overbought RSI.

It’s worth noting, however, that the MACD conditions are still bullish as the quote trades successfully beyond the 100-DMA.

Hence, the anticipated pullback could aim for the 61.8% Fibonacci retracement level of the pair’s May-September downturn, around 1.1785, but may struggle to conquer the 100-DMA level surrounding 1.1650.

Should the GBPUSD bears manage to smash the key moving average support near 1.1650, also comprising the previous monthly high, the prices may drop towards a seven-week-old support line, close to 1.1390 by the press time.

Alternatively, an upside clearance of the aforementioned resistance line from June, close to 1.2030, restricts the GBPUSD pair’s short-term advances.

Following that, the 200-DMA hurdle near 1.2240 and the August month high near 1.2280 can challenge the buyers before directing them to the May 27 high of 1.2666.

To sum up, GBPUSD teases sellers ahead of the key data but the road to the south is long and bumpy.

GBPUSD: Daily chart

Trend: Pullback expected