GBP/USD has been retreating from the highs amid a worsening market mood. US inflation data is critical to the dollar’s next moves after UK GDP figures have supported sterling. Wednesday’s four-hour chart is showing cable is still near overbought conditions. Is the downside correction over? Not so fast, as GBP/USD has yet to make a convincing pullback that would allow for further gains. Markets are in a risk-off mood due to several factors. The escalating conflict between Israel and Palestinian faction Hamas is the latest factor to dampen the mood, joining the ransomware attack that has paralyzed gasoline supplies to the US northeast. However, the latest concern is of inflation rearing its ugly head in the US. While disappointing Nonfarm Payrolls showed the world’s largest economy is cooling down, fears quickly reemerged. Are these concerns exaggerated? America publishes Consumer Price Index data for April later in the day, and core prices are set to top the 2% level. The calendar is pointing to a jump from 1.6% to 2.3% YoY. US Consumer Price Index April Preview: The two base effects on inflation The greenback’s recovery and the damp mood in markets are showing that unless Core CPI leaps considerably beyond estimates, the dollar could snap back in a “buy the rumor, sell the fact” response. Will the pound rise? Sterling has been benefiting from better than expected Gross Domestic Product figures for the first quarter in the UK. The economy shrank by only 1.5% during the first months of the year, which were dominated by the nationwide lockdown. Britain’s successful vaccination campaign also supports the pound. While the fundamental ingredients are in for cable to resume its rally, technicals point to overstretched conditions. GBP/USD Technical Analysis Pound/dollar continues benefiting from upside momentum on the four-hour chart and trades far above the 50, 100 and 200 Simple Moving Averages. However, the Relative Strength Index (RSI) is too close to 70 – flirting with overbought conditions. That makes every upside move limited in nature. Resistance awaits at 1,4160, which is the fresh May high. Further above, 1.42 and 1.4240 are eyed. Support is at 1.4110, the daily low, and then 1.4075, 1.4050 and the former triple top of 1.4010. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next GBP/USD: Fundamentals are in for cable to resume its rally, technicals point to overstretched conditions FX Street 2 years GBP/USD has been retreating from the highs amid a worsening market mood. US inflation data is critical to the dollar's next moves after UK GDP figures have supported sterling. Wednesday's four-hour chart is showing cable is still near overbought conditions. Is the downside correction over? Not so fast, as GBP/USD has yet to make a convincing pullback that would allow for further gains. Markets are in a risk-off mood due to several factors. The escalating conflict between Israel and Palestinian faction Hamas is the latest factor to dampen the mood, joining the ransomware attack that has paralyzed… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.