GBP/USD - Bearish if breaches below 1.2435
The Pound posted modest gains against the US Dollar in the previous session after the UK’s annual rate of inflation in February rose to its highest level since September 2013, boosting investor confidence for a sooner-than-expected interest rate hike by the Bank of England. On the 1H chart, the pair is trading rangebound between the 1.2460-90 area, hinting at consolidation in the pair. However, a recent signal line crossover from above by the MACD indicator, suggests at the potential weakness in the near term. Immediate support is seen at the 1.2460 level, followed by the 1.2450 and 1.2435 levels. A breach below the latter might trigger negativity in the pair. Conversely, key resistance is located at the 1.2490 level, followed by the crucial 1.2500 and 1.2510 levels. A break above the latter might lead to further bullish momentum in the pair.