GBPUSD is about to pull back from 1.32000 to 1.31500

The GBPUSD currency pair opened yesterday, May 12, with a small gap of 560 points. Over the next few hours, the pair attempted to close the gap but failed. News of a significant easing in trade tensions between the US and China, along with a large-scale mutual reduction in tariffs, strengthened the dollar against the pound by 1,152 points, driving prices down from 1.32841 within an hour. Yesterday’s daily candle closed at 1.31754.

Today, May 13, the GBPUSD pair is trading slightly below the 1.32000 level. This level has acted as resistance since yesterday evening. The price has made several attempts to break through but retreated each time. There’s a high probability of a further pullback from 1.32000 if today’s daily candle closes below this level, mirroring yesterday’s price action.

The Relative Strength Index (RSI) on the daily timeframe has declined to 41, signaling the development of a sell bias for the asset. The 4-hour and hourly RSI readings also remain below the 50 line, further supporting the tendency to sell the currency pair.

On the daily timeframe, the Moving Average Convergence Divergence (MACD) indicator remains above the zero line but shows weakening bullish momentum. Meanwhile, the 4-hour MACD has crossed below the zero line, confirming strengthening bearish momentum.

The UK unemployment rate rose by 0.1 percentage points to 4.5% in April compared to previous months, though this had no significant impact on the instrument's price movement. The key market focus now shifts to today's US Consumer Price Index (CPI) data releases. Both the headline and core CPI figures are expected to remain unchanged year-over-year and show no movement month-over-month.

Trading strategy option: sell at the current price with Take Profit at 1.31500 and Stop Loss at 1.32500.