GBP/USD -Signs of reversal ?-

• Soft inflation data in the US prompted some fresh USD selling
• Pound was one of the currencies that gained significantly following the news
• We are starting to see signs of trend reversal, at least for the minor one
• Too early to call it a major trend reversal
• First sign is the breakout above the descending trend line dating back since February 2022
• Short term moving average ( 20 SMA ) offering some support and starting to point north
• Markets are scaling back Fed aggressiveness, which might benefit the GBP
• Buyers still have a lot of work to do, first is to overcome the first resistance at 1.2300 and create major higher lows pattern

Comment:

Re-test of the trend line likely, today at 1.1950