GBP/USD keeps a mild bid tone, aiming for 1.2685
- The Pound picks up with the USD weighed by a mild risk appetite.
- Investors are looking from the sidelines ahead of Wednesday’s US CPI data.
- GBP/USD’s broader trend remains bearish while below the 1.2685 resistance
The Sterling has opened the week on a slightly bullish tone. A somewhat softer US Dollar amid the moderate risk appetite has allowed the pair to extend its recovery from post-NFP lows, returning to the mid-range of the 1.2600s.
The Positive market sentiment is weighing on the US Dollar, yet downside attempts are likely to remain limited. Investors are expected to keep a cautious tone ahead of the release of the US Consumer Prices Index data on Wednesday.
On Friday, the unexpectedly strong US Nonfarm Payrolls 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 might give a fresh impulse to the US Dollar.
From a technical perspective, the pair is trading lower from early March highs. Resistance at 1.2680 is a key level to ease bearish pressure and aim for 1.2750, the 61.8% Fibonacci extension of the March selloff. Supports are 1.2575 and 1.2535.