GBP/USD: Drop below 1.30 to open up additional losses toward 1.29

GBP/USD has reversed its direction following Monday's meager recovery attempt. The pair trades within a touching distance of 1.30 and sellers could show interest in case this level turns into resistance.

1.30 support looks increasingly likely to fail

“Later in the session, March inflation data from the US will be looked upon for fresh impetus. The Consumer Price Index (CPI) is forecast to jump to 8.5% in March from 7.9% in February. A stronger-than-forecast CPI reading could help the greenback preserve its strength and weigh on GBP/USD.”

“GBP/USD fell below 1.30 (psychological level) on Monday and last Friday but is yet to make a four-hour close below that level. In case that happens, 1.2980 (April 8 low) could act as interim support before sellers can target 1.29 (psychologically level).”

“On the upside, the descending trend line coming from late March forms the first technical resistance at 1.3050 ahead of 1.3080 (50-period SMA) and 1.31 (psychological level).”

See – US CPI Preview: Forecasts from 12 major banks, another lurch forward