• Fails to gain traction despite weaker USD.
• US macro data awaited for fresh impetus.
The GBP/USD pair struggled to capitalize on an early uptick and might now be headed towards the lower end of its daily trading range.
The pair once again failed to break-through the UK CPI-led swing high resistance near the 1.3920-25 supply zone and retreated around 30-pips from session tops, despite a mildly weaker tone surrounding the US Dollar.
The fall lacked any obvious catalyst and hence, could be attributed to some profit-taking, especially after the recent upsurge of over 150-pips from near 4-week lows set last Friday.
There isn't any market moving data due from the UK and hence, the focus would remain on important US macroeconomic releases - consumer inflation figures and monthly retail sales data. Today's data might influence March Fed rate hike expectations and eventually provide some fresh directional impetus.
Technical levels to watch
Subsequent weakness below 1.3865 immediate support might turn the pair vulnerable to head back towards retesting the 1.3800 handle. On the upside, bulls would be eyeing for a clear breakthrough 1.3920-25 hurdle, above which a fresh bout of short-covering could lift the pair back towards the key 1.40 psychological mark.
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