The GBP/USD pair sets on the back foot in the American session and continues to decline from the area of 1.3141 - 1.3089. Renewed US Dollar strength following the latest macroeconomic data releases from the US weighs on the pair ahead of Tuesday's key UK inflation data. The British pound has gone back and forth during the trading session on Tuesday, as we continue to see a lot of consolidation.
The GBP/USD's consolidation from 1.3141 is in progress. Intraday bias remains neutral and deeper retreat could be seen. But downside should be contained below th spot of 1.3141 - 1.3089 resistance turned support to bring rise resumption.
The lower-limit of the ascending regression channel and the 50-period Simple Moving Average (SMA) form key pivot level at 1.3050. If the pair stays below that level and continues to use it as resistance, 1.3141 (static level) could cat as next support ahead of 1.2994.
In case GBP/USD manages to stabilize above, it could stretch higher toward 1.3141 (static level, mid-point of the ascending channel) and 1.3050 (psychological level). If the pair fails to pass through the level of 1.3050 ,the market will indicate a bearish opportunity below the strong resistance level of 1.3050.
In this regard, sell deals are recommended lower than the 1.3050 level with the first target at 1.3000. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.2903.
However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.3141 (notice that the major resistance today has set at 1.3141). On the upside, break of 1.3141 will resume larger up trend and target of 1.3200 to 1.3225 from 1.3250 at 1.3288 next.
