• GBP/USD soared more than 0.70% on Wednesday, post-CPI, ahead of FOMC’s decision.
• Key technical resistance lies at YTD highs of 1.2893, 1.2900, and the 1.3000 figure.
• Sellers must push prices beneath 1.2800, to remain hopeful of lower prices.

The Pound Sterling recovered some ground versus the US Dollar in early trading on Wednesday after the US Department of Labor revealed that inflation is cooling in the United States. This development happened ahead of the Federal Reserve's monetary policy decision, which would be followed by Fed Chair Jerome Powell's press conference. Therefore, the GBP/USD hit a two-month high and traded at 1.28434, gaining more than 0.70%.

GBP/USD Price Analysis: Technical outlook

The GBP/USD remains upward biased, and after the US inflation data, has broken to new two-month highs, with just the year-to-date (YTD) high lying ahead at 1.2893. Once cleared, the next stop would be 1.3000 before challenging last year's high of 1.3142.

Momentum shifts strongly bullish, as depicted by the Relative Strength Index (RSI), which aims upward toward becoming overbought. Yet it remains shy of the highest RSI peak of 72.

If sellers want to regain control, they must drag the GBP/USD below 1.2800. Once surpassed, the next support would be 1.2750, ahead of the current week’s low of 1.2687