The short-term chart better describes the pair’s price action over the week:
GBP/USD Hourly Chart
Even though the dollar has fallen slightly, it has not yet reached much in GBP/USD.
The jump after yesterday’s release of UK inflation data stopped after testing the 100 hour moving average (red line). But buyers have now managed to surpass this key level in the short term, at least. However, yesterday’s high, closer to 1.2482, holds them back, at least for now.
In any case, the short-term bias has become more neutral, as price action is between the 100 and 200 hour moving averages (blue line). But buyers also face minor resistance and bids closer to 1.2500 for now.
To put it more simply, the slight bounce yesterday and today doesn’t really have any technical significance. It would take more to really convince of a turnaround in sales compared to last week.
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