GBPUSD: Recovers With Caution!
The GBPUSD remains in a recovery mode as long as trades above 1.2825/1.2895 levels on a daily closing basis. Resistance comes at 1.3068 levels. A halt is very likely, but a break will turn outlook to 1.3130 level. Note that recovery above 1.2825 should be limited by 1.3068/1.3130 level. Anyway; above 13130 sees a bullish move to 13175 level ahead of 1.3255 level.
On the downside, support comes at 1.2895 level ahead of 1.2825 level. Below that level restores the downside momentum and opens 1.2740 level, further down, support comes at 1.2680 level.
Conclusion: The GBPUSD sees recovery threats above 1.2825/1.2895 levels with caution.
Support: 1.2895, 1.2825, 1.2740, 1.2680
Resistance: 1.2972, 1.3068, 1.3130, 1.3175
The U.S will report on the Consumer Price Index (CPI) at 13:30 GMT. The forecast is to rise 0.3%, from 0.1% in the preceding month.
Core CPI is also expected to inch up 0.2%, from 0.1% a month earlier. Above forecast will support the USD, below forecast will support the GBP.