GBP/USD is still on its current uptrend, based on the rising channel on the pair’s 1-hour time frame. 

The pair just came off a dip and bounced from the 1.5600 area to the 1.5900 mark last week and appears ready to make another test of support.

The pair is edging lower ahead of the UK CPI release today, as traders expect a dip from 2.8% to 2.7%. However, a higher than expected reading might put pound bulls back into action, as it would prompt some policymakers to call for an earlier end to easing.

A buy order at the 1.5850 minor psychological support at the bottom of the channel could be a good entry level. A stop below the 1.5800 mark should be enough to weather volatility for today’s releases while a target at 1.6000 would yield a 2:1 reward to risk ratio.

By Kate Curtis from Trader’s Way