GBP/USD Current price: 1.2420
The GBP/USD pair rebounded on Monday after losing ground significantly on Friday. On Tuesday UK inflation data from March will be released. Market consensus point to an increase of 0.3% in the CPI and the annual rate to remain at 2.3%. On Friday, despite the lower-than-expected US employment report, cable fell sharply, sliding below the 20-day simple moving average, for the first time since the day after the FOMC March meeting.
Today price rebounded but it found resistance at 1.2420/30, where the mentioned moving average stands. The technical bias is starting to point toward further losses, with the daily Momentum about to break under 100. The pair is currently at a key level and if it falls back under 1.2400 the odds for further declines are likely to rise. In the short-term, if the pound fails to rise above 1.2430, a drop back to 1.2400 is expected during the Asian session; if the slide extends, 1.2360 (Apr 10 low) and 1.2340 are potential targets.
Support levels: 1.2395 1.2360 1.2335
Resistance levels: 1.2430 1.2505 1.2550