The pound was trading marginally lower on Monday morning and the GBPUSD pair was spotted hovering slightly above the 1.39 mark.
The macro calendar is totally empty today and therefore volatility could be lower throughout the day. Investors will then focus on Tuesday’s CPI data, where inflation is projected to ease to 2.8% year-on-year, from 3.0% scored in the previous month. This could be sterling negative as it might ease the pressure on the Bank of England to raise rates.
The US dollar is trying to recover from the recent sell-off, but it goes higher only very slowly. The so-called Trump policy is not very supportive for the greenback and investors are selling any rallies, with the trend remaining bearish for the dollar.
The GBPUSD pair settled above the broken bearish trend line, which switched the trend to mildly bullish. The resistance is near last week’s highs below the 1.40 mark and sterling needs to jump beyond to confirm the bullish bias.
On the other hand, the support is located at the broken trend line at 1.39 and if not held, further decline toward 1.3860 could occur. In all cases we strongly recommend to have rigorous money and risk management.
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