Australia Exchange foreign exchange, the British pound or pullback before the June CPI announcement, whether it can hold the 1.30 level support is crucial

Fawad Razaqzada, market analyst at City Index, said some consolidation/pullback in GBP/USD shouldn't come as a surprise as the June CPI won't be released until Wednesday. She added: "1.30 is now the first line of defence for the bulls. If it breaks through, GBP/USD could fall to 1.2850. On the upside side, there aren't many obvious resistance levels to watch, so just watch 1.31, 1.32. We'll stay bullish on GBP/USD until the technical charts tell us otherwise."

According to a new technical analysis, the pound is likely to continue to gain support against the dollar in the coming days, with any weakness likely to spark renewed buying interest.

Fawad Razaqzada, a market analyst at City Index, said that the pound and dollar remained stable above both the 21-day and 200-day moving averages, and the short- and long-term trends were objectively bullish, especially as the slope of these moving averages was also positive.

Before that, the pound hit a near 15-month high against the dollar on Friday, July 14, after both CPI and PPI in the United States fell short of analysts' expectations.

From the Relative Strength Index (RSI) sub-index, GBP/USD is overbought, indicating that GBP/USD is "overbought", so GBP/USD may need to retreat or consolidate for a while before it is ready to move higher again.

But Razaqzada said the momentum data showed that GBP/USD was a "buy the dip" market rather than a "sell the high" market, at least from a technical perspective. This means the pair is more likely to react to support rather than resistance, as more people will be looking for bullish trades.

He said that since the UK's June CPI won't be released until Wednesday, some consolidation/pullback in the pound against the dollar shouldn't come as a surprise.

Razaqzada added: "Among the support levels to watch, 1.3000 is now the first line of defense for the bulls. If it falls below this level, GBP/USD could fall to 1.2850, which was the previous resistance level. If it falls to this area, GBP/USD will find good support near this area." Razaqzada also said: "On the upside, there are not many obvious resistance levels to watch, so just watch 1.31, 1.32. We will remain bullish on GBP/USD until the technical charts tell us otherwise."

GBP/USD daily chart

At 10:23 on July 18, Beijing time, the pound was trading at 1.3086/87 against the dollar.