GBP/USD surged on Monday, reaching 1.2215 as market risk appetite recovered due to Tuesday's UK wage data and US Retail Sales figures. UK average earnings excluding bonuses are expected to remain stable at 7.8% on Tuesday, with the bonus-inclusive figure dropping from 8.5% to 8.3%.
The 4-hour chart's Relative Strength Index (RSI) remains below 50, indicating a lack of recovery momentum. Short-term static support appears to be forming around 1.2130 before 1.2100 (psychological level) and 1.2050 (recent downtrend endpoint).
GBP/USD faces strong resistance in the 1.2200 - 1.2210 region, where the 23.6% Fibonacci retracement level, the 50-period Simple Moving Average (SMA), and the 100-period SMA converge. If the pair surpasses this barrier, the next recovery targets could be set at 1.2250 (psychological level) and 1.2300 (38.2% Fibonacci retracement level).
The 4-hour chart's Relative Strength Index (RSI) remains below 50, indicating a lack of recovery momentum. Short-term static support appears to be forming around 1.2130 before 1.2100 (psychological level) and 1.2050 (recent downtrend endpoint).
GBP/USD faces strong resistance in the 1.2200 - 1.2210 region, where the 23.6% Fibonacci retracement level, the 50-period Simple Moving Average (SMA), and the 100-period SMA converge. If the pair surpasses this barrier, the next recovery targets could be set at 1.2250 (psychological level) and 1.2300 (38.2% Fibonacci retracement level).
