GBP/USD poised for a rebound amid holiday-thinned trades?

Having stalled its overnight downslide at 1.2500 levels, the GBP/USD pair entered a phase of consolidation in the Asian session this Friday, as the bears lack further momentum amid holiday-thinned markets. Most major world markets are closed today in observance of Good Friday.

The spot trades around a flat—line just ahead of 1.25 handle so far this session, keeping its offered tone intact amid a solid comeback staged by the US dollar yesterday, as demand for the US currency returned, after risk-off seeped back on the news of the US bombings in Afghanistan.

Looking ahead, the US dollar may stall the recovery-mode against its main competitors, as markets expect softer US CPI data, while the retail sales data is likely to leave markets largely unimpressed.

Hence, a rebound in cable cannot be ruled out amid lack-lustre US data and profit-taking. Also, low volumes and irregular volatility amid light trading could exaggerate the moves.

GBP/USD Levels to consider            

Matias Salord, Analyst at FXStreet notes, “The upside tone still prevails with price holding above the 20-day moving average. It has approached a very strong resistance area between 1.2580 and 1.2610. A break higher would open the doors for a rally to 1.2720/ 1.2750. Support levels: 1.2490 1.2450 1.2400 Resistance levels: 1.2575 1.2595 1.2620.”