GBP/USD Price Analysis: Stays bullish despite retreating from two-month highs

• GBP/USD clings to earlier gains after UK CPI data.
• Immediate resistance at 1.2800 remains elusive for buyers.
• Support at 1.2700; once cleared, GBP/USD could dive toward a confluence of technical indicators around 1.2634.

The Pound Sterling holds to earlier gains versus the Greenback following a hotter-than-expected inflation report in the UK, yet the pair pulls back from a two-month high as the CPI approaches the Bank of England's goal. The GBP/USD trades at 1.2739, up 0.24%.

GBP/USD Price Analysis: Technical outlook

The pair remains neutral to upward bias despite exchanging hands below the 1.2761 daily high of the session. Momentum backs buyers, as shown by the Relative Strength Index (RSI), as they are leaning onto the 1.2700 psychological figure as the first line of defense.

To extend their gains, buyers must reclaim the March 21 high of 1.2803. Further gains lie overhead, with the year-to-date (YTD) high at 1.2893, 1.2900, and the psychological 1.3000 mark.

Conversely, a retracement would emerge once the GBP/USD tumbles below 1.2700, exposing the confluence of May's 3 high and the 100-day moving average (DMA) at 1.2634, followed by the 50-DMA at 1.2581.

GBP/USD Price Action - Daily Chart