GBP/USD has lost its traction but managed to hold above the 1.26 level. The pair needs to clear 1.2660 to remain bullish, FXSTreet’s Eren Sengezer reports.
Cable needs to flip 1.2660 into support to attract buyers
“The Conference Board's Consumer Confidence Index for May and the Housing Price Index data for March will be featured in the US economic docket. In case investors are reminded of the negative impact of inflation on consumer confidence, Wall Street's main indexes could come under bearish pressure and make it difficult for GBP/USD to gather bullish momentum.”
“In case cable breaks below 1.26 (psychological level, static level), the next immediate support aligns at 1.2570 (200-period SMA, 50-period SMA). If that latter support fails, this could be seen as a significant bearish development and open the door for additional losses toward 1.2540 (former resistance, static level).”
“The pair needs to settle above 1.2630 (ascending trend line) and clear 1.2660 (static level) to test 1.27 (static level, psychological level).”
