GBP/USD Price Analysis: Retreats towards 1.2400 within rising wedge, UK inflation eyed

• GBP/USD struggles to extend the previous day’s corrective bounce off one-week low.
• 12-day-old rising wedge bearish chart formation keeps sellers hopeful.
• Lackluster MACD, sustained trading beyond 200-SMA keeps buyers hopeful.

GBP/USD makes rounds to 1.2425-20 within a two-week-old rising wedge bearish chart formation during early Wednesday morning in Asia. In doing so, the quote portrays a cautious mood ahead of the key UK inflation data for March, namely the Consumer Price Index (CPI).

The Cable pair recently bounced off the bottom line of the stated rising wedge, which in turn joins the steady RSI (14) to suggest further recovery of the quote. However, the 21-SMA surrounding 1.2435 restricts the immediate upside of the GBP/USD price.

Following that, the 1.2500 round figure and the top line of the aforementioned bearish chart formation, around 1.2555 by the press time, could challenge the Cable pair buyers.

Should the GBP/USD price remains firmer past 1.2555, it defies the bearish chart formation and can propel the quote toward the May 2022 high of near 1.2665. That said, the 1.2600 round figure may act as an intermediate halt during the run-up.

Alternatively, a downside break of 1.2365 confirms the rising wedge bearish pattern and suggests a theoretical fall targeting 1.2000 psychological magnet. However, the 200-SMA level can act as an extra filter towards the south, around 1.2265.

It should be observed that the highs marked in mid-March around 1.2200 can also act as extra support to watch during the GBP/USD pair’s fall past 1.2365.

GBP/USD: Four-hour chart

Trend: Further upside expected