Similarly to other major currency pairs involving the US Dollar, GBP/USD was trading sideways for the most session on Monday. After a quiet morning, the Sterling surged 49 pips, but then resumed its period of consolidation slightly below the weekly R1. The Pound is currently testing the upper boundary of a three-month ascending channel circa 1.38. Given that this area is likewise reinforced by the weekly R1 and the monthly R3, it is unlikely that bulls manage to surpass the 1.3850 mark. Meanwhile, the UK is to publish its monthly CPI data at 0930GMT. This data release might disrupt the pair’s still movement and push the rate lower towards the 55-hour SMA and the monthly R2 near 1.37. In case no other significant events occur, the rate could remain in the 1.3700/1.3850 area today.
