GBP/USD Price Analysis: Set-up warrants some caution before placing fresh directional bets

• GBP/USD failed to capitalize on the UK CPI-led intraday positive move.
• The downtick again attracts some dip-buying near the 1.2970 region.

The GBP/USD pair faded the UK CPI-led intraday bullish spike and refreshed session lows in the last hour, albeit now seems to have stabilized near the key 1.30 psychological mark.

The uptick faltered near 100-hour SMA, which coincides with 23.6% Fibonacci level of the 1.2872-1.3069 positive move and should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly/daily charts haven't been supportive of any firm near-term direction and warrant some caution before placing any aggressive directional bets.

Bearish traders are likely to wait for a sustained weakness below 50% Fibo. level, around the 1.2970 region (tested on Tuesday) before positioning for any further depreciating move.

Conversely, it will be prudent to wait for some follow-through buying beyond the 1.3020-25 confluence zone (100-hour SMA and 23.6% Fibo.) to confirm any meaningful positive move.

GBP/USD 1-hourly chart