GBP/USD: To consolidate on the day – OCBC

Pound Sterling (GBP) slipped overnight in reaction to broad USD rebound. There is no tier-1 data for UK this week, putting more focus on BoE-speaks. GBP was last seen trading at 1.2635, OCBC's FX analysts Frances Cheung and Christopher Wong note.  

GBP/USD may see consolidation intraday

"Huw Pill will speak tonight, followed by Dhingra (Wed), Ramsden (Thu). Last week, BoE’s Pill told Reuters that he is cautious about further rate cuts. He said that BoE had more work to do to bring down inflation and that policymakers 'can’t just remove all restriction overnight, cut rates aggressively, etc'."

"Bullish momentum on daily chart shows signs of fading while RSI is flat. May see consolidation intraday. Support at 1.2610 (38.2% fibo retracement of Sep high to Jan low), 1.2510 (21 DMA). Resistance at 1.2680, 1.2770/90 levels (50% fibo, 200 DMA)."