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.
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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.