The British pound has moved to new 2017 trading high against the U.S dollar, hitting 1.3288 during the European session, after much better than expected United Kingdom inflation data for the month of August.
Monthly inflation increased 0.6 percent in the UK, which was much better than analyst expectations, and a sharp rise from the previous months figure of –0.1 percent.
Price remains at elevated level, trading well above the former yearly price high, located at 1.3268.
Traders will now watch for a higher-time frame price close above the former yearly price high, at 1.3268, for further confirmation of continued upside on the GBPUSD pair.
Key technical resistance above the 1.3288 level, is located at 1.3300, and the September 13th, 2016 price high, at 1.3338. Further longer-term GBPUSD resistance is found at the 1.3395 level.
Any corrections to the downside, should find support from the recent pullback low, at 1.3248, with Fibonacci support coming at 1.3220.
Further GBPUSD support below the 1.3200 level comes from the 50-hour moving average, located at 1.3187.