GBP/USD is once again unable to firmly break above 1.3900 and above the highs posted earlier in the month
Resistance from the 7 March high at 1.3912 appears to be a tough level to crack for cable overnight and in today’s early Asian session as well.
The rejection here sees the pair fall to a session low of 1.3897 now, though the daily range is only 16 pips — pretty much tells you what you need to know about price action so far.
But regardless, the resistance sitting between 1.3900 and 1.3933 (61.8 retracement level) is a crucial level for buyers to break above if the rebound from the lows are to extend further. Unless those levels break, we are closer to a test of the 100 and 200-hour MAs (red and blue lines respectively) instead.
Yesterday’s low was supported by the 38.2 retracement level @ 1.3849, so to the downside that will be the key level of support for the time being.
Today’s US CPI report will be one to watch for as a catalyst for a move in the pair.