FX.co ★ Technical review for GBP/USD: a local decrease is possible

GBP/USD bounced back after the UK reported weaker-than-expected data on inflation. This is because the figure is likely to influence the Bank of England's decisions on raising interest rates.

Technical picture:

The quote is currently above the middle line of the Bollinger indicator, below the SMA 5, but above the SMA 14. Meanwhile, both the relative strength index (RSI) and the stochastic indicator are moving out of the overbought zone and are indicating a sell signal.

Possible dynamics:

A decline and consolidation below 1.2460 is likely to provoke a larger dip to 1.2305.