The Pound continued to drop to the lowest in a week after the UK CPI fell behind 2.0% forecast to remain unchanged at 1.9%. Lack of Brexit negative developments limited the pair’s further declines as the British Parliaments are in Easter recess until April 23. Today, traders will be focusing on UK’s Retail Sales as it will be the key driver for the GBP/USD pair. The overall sentiment is slowly turning bearish as 1.30 being the psychological support and the line in the sand. If it is lost, then the Sterling sell-off will intensify.
The Pound broke below key support 1.3070 which became a new resistance signaling more potential decline in the Sterling. 1.3020 – 1.30 being the major support area that we need to keep an eye on. If broken, then a new bearish trend could be established. The bulls need to push price above 1.3070 (R1) to stay in control.
Support: 1.3020 / 1.30
Resistance: 1.3070 / 1.31