GBP/USD analysis: Brexit and inflation taking center stage

GBP/USD Current price: 1.2341

The British Pound was the best performer this Monday, plunging from  1.2435 to 1.2334 following news indicating that the UK government will trigger the Brexit process next March 29, starting a two-year time frame to get a smooth deal that satisfies both parts. Following the announcement, EU Commission chief spokesman Margaritis Schinas said at a briefing in Brussels that the EU is ready to begin talks "immediately" and that they had a comprehensive plan in place.  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

View Live Chart for the GBP/USD

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