GBP/USD takes on the recovery towards 1.2400, UK CPI eyed
|The GBP/USD pair is seen extending its overnight recovery in the Asian trades, now heading for a retest of 1.24 handle, as persisting risk-on market profile underpins the sentiment around the risk currency GBP.
Moreover, aggressive selling in the US dollar over the last hours, in response to a fresh bid-wave caught by EUR/USD, after Macron won the first French presidential debate held earlier today.
However, it may take more efforts from the bulls to accelerate the upside, as negative Asian equities combined with EU Juncker’s latest comments keep a check somewhat on the prices.
Moreover, markets may turn cautious heading into the UK CPI report and BOE Governor Carney’s speech, which could leave the spot in a phase of upside consolidation in the session ahead.
Meanwhile, focus will also remain on the US current account data for further momentum on the major.
GBP/USD Levels to consider
“Valeria Bednarik, Chief Analyst at FXStreet noted, “The GBP/USD pair settled for the day a couple of pips below 1.2345, a major Fibonacci support and February's low, while in the 4 hours chart, the price is also battling around a bullish 20 SMA and technical indicators have retreated sharply, with the Momentum indicator already within bearish territory and the RSI heading south around 54, all of which increases chances of a downward extension for the upcoming sessions. The UK will release multiple inflation figures this Tuesday, including PPI, CPI and retail price indexes for February, all of which will set the tone for the Pound probably for the next of the week. Support levels: 1.2345 1.2300 1.2260 Resistance levels: 1.2425 1.2470 1.2510.”
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