Sterling bulls remain in control but they're facing the potential for a pullback after soft UK GDP sapped the pound's strength by adding to COVID-related growth fears.
Though GBP/USD got a brief reprieve from unexpectedly soft U.S. CPI, which pulled cable up to 1.3170 from early New York lows by 1.3133, its bullish run of higher highs and lows has come to an end.
GBP/USD now needs more help from a further deterioration in U.S. data or a Brexit deal to regain recent highs and attempt a run at 1.3481's 2020 high and beyond.
Longs will retain control above Fibo and daily cloud top support at 1.3079, but the bullish structure appears to be weakening.
Bearish momentum should pick up with a move below the series of daily moving averages from 1.3049-1.3006, which would target support at the 100-DMA at 1.2933 and the lower 30-day Bolli by 1.2816.
The weak UK GDP data has also pushed up UK negative rate sentiment 0#FSS:, which adds to GBP/USD weakness.
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