Bloomberg is reporting that the UK government may announce emergency measures to boost London housebuilding as soon as Thursday, a headline that sparked a late-session spike higher in the GBPUSD as London and European traders wrapped up their day.
Earlier in the session, the pound had fallen sharply after UK inflation data came in weaker than expected, with headline CPI unchanged month-on-month (vs. +0.2% expected) and softer core readings across the board. The initial reaction saw GBPUSD break below a key swing area between 1.3323 and 1.3341, extending down to a session low of 1.3306 before stabilizing.
Since then, the pair has rebounded strongly, reclaiming the 1.3341 level and climbing toward a near-session high of 1.3373. That peak aligns precisely with the 200-hour moving average at 1.33734 (green line on the chart above), a critical short-term technical barrier. The current price is hovering around 1.3367 — roughly unchanged on the day — as traders weigh whether this bounce has more room to run.
From a technical perspective, buyers will need to push decisively above the 200-hour moving average (1.3373) to regain control and confirm a more constructive short-term bias
