UK markets remained close on Monday and tomorrow normality will return. The economic calendar shows the next key report from the UK to be released on Friday (retail sales). The GBP/USD pair is about to post the highest daily close since February after extending last week rally. Cable lost momentum near the 1.2600 handle, that is a relevant area. A consolidation on top would signal an extension and a confirmation of the upside bias in the short-term. Going into the Asian session, the pair lost some strength and the RSI in the 4-hour chart point to a possible correction or some consolidation. A decline under 1.2530 (20-SMA in 4-hour chart) could change the short-term bias to bearish. The weekly close from a technical perspective could be important, if it ends significantly above 1.2550, it could give signal of further strength for the next weeks, that would be confirm with a daily close above 1.2600.
Support levels: 1.2530 1.2495 1.2450
Resistance levels: 1.2615 1.2655 1.2670