- The Pound rebounds with the Dollar weighed down by a slight appetite for risk.
- Investors are on the sidelines awaiting Wednesday's US CPI data.
- The overall trend of GBP/USD remains bearish while below the 1.2685 resistance.
The British Pound has opened the week on a slightly bullish note. A somewhat weaker US Dollar amid subdued risk appetite has allowed the pair to extend its recovery from post-NFP lows, returning to the middle of the 1.2650 range.
Positive market sentiment is weighing on the US dollar, although downside attempts are likely to remain limited. Investors are expected to maintain a cautious tone ahead of the release of US Consumer Price Index data on Wednesday.
On Friday, the unexpected rise in the NFP confirmed the strong momentum of the US economy and cast further doubt on a Fed rate cut in June. In this context, another positive surprise on Wednesday could give new impetus to the US dollar.
From a technical point of view, the pair is trading lower from the highs reached in early March. Resistance at 1.2680 is a key level to ease bearish pressure and target 1.2750, the 61.8% Fib extension of the March decline. Supports are 1.2575 and 1.2535.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
