GBP building on support ahead of inflation data 17/8/2022

The British pound succeeded in achieving the official target published during the last report located at 1.2000, recording the lowest level at 1.2005, to witness the movements a double rebound as a result of hitting the published support, which forced it to retest the 1.2120 resistance level.

On the technical side today, the pair is now hovering around the 1.2120 resistance level, and with a closer look at the 4-hour chart, we find the 50-day SMA that is still a hindrance to the pair, and on the other side, the RSI is providing positive momentum signals.

We tend to have a bullish slope in the coming hours, but with caution, targeting 1.2190/1.2180 before determining the next price destination. We remind you that the bullish slope does not contradict the general bearish trend, whose first official target is around 1.2000.

Note: The International Energy Agency’s oil inventories report is scheduled for release today, and we may witness high price volatility.

Note: UK inflation data, US retail sales data, and the results of the Federal Reserve meeting are due today, which are high-impact data; we may see high volatility in prices and all scenarios are on the table.

S1: 1.2030	R1: 1.2140
S2: 1.1960	R2: 1.2190
S3: 1.1920	R3: 1.2250