GBPUSD → Weak pound on negative fundamental backdrop

GBPUSD is finally coming out of a long consolidation. Tuesday's news determines the medium-term prospects for the market, and most likely the decline will continue.

The target at the moment is 1.25000 - liquidity area and also an important psychological level. The bullish correction is coming to an end and the price is back in the bearish phase. After the inflation report, the markets are now betting that the Fed may start the interest rate cut phase in the summer. The forex market is plunging into the red corridor on the back of a rising DXY .
The currency pair will technically reach 1.2500 in the near term and a correction may follow after a false breakdown.

Resistance levels: 1.2615, 1.2650
Support levels: 1.2520, 1.2500

A break of consolidation support opens a bearish trend. Negative fundamental background will favor it. The nearest target is 1.25, further correction may follow before the subsequent fall to 1.2380.

Regards R. Linda!

Commentaire:

It is worth paying attention to the local level of 1.2572
Possible retest before further fall.

Commentaire:

The currency pair does not reach the target, but tries to provoke people to buy. A retest of 1.25716 resistance is being formed and the following scenario is quite likely: False break of 1.25716 resistance and further fall to the liquidity area.