GBPUSD price action has been choppy this week, fluctuating above and below the 61.8% retracement of the September 2024 decline, which sits at 1.2922.

In today’s session, price action continued to test this level, trading both above and below it during Asian and early European hours. Softer US CPI data initially pushed the pair to a new high at 1.2988, but momentum faded, leading to a pullback. However, the decline found support at 1.2922, reinforcing its significance.

Drilling down to the hourly chart below, dips earlier in the European session stalled ahead of the rising 100-hour MA, a bullish sign. Post-CPI, the retracement held just above the higher 61.8% level, further confirming buyers’ control.

Going forward, as long as retracement at 1.2922 and the 100-hour MA (blue line on the chart below currently at 1.2912) hold as support, the bullish bias remains intact.

The next upside targets are the psychological and natural level at the 1.3000 level, followed by the 1.3044 – 1.3058 swing area on the 4-hour chart. A sustained move above these levels would further strengthen the bullish case, while a break below key support (61.8% and 100 hour MA) would shift momentum back in favor of sellers.