Pound Dollar recovered its losses after the weekend rumour. The gap opening that was formed on Monday is yet to be covered and the pair is currently trading upwards as we are heading close towards the UK's PM Theresa May's speech.
Risk aversion put the USD Dollar under pressure, leading the GBP to gain grounds during the Asian sessions and the tepid UK inflation numbers put the rise on hold.
The upcoming May's speech will set a direction on GBP/USD and the 4 hours chart is posing for a bearish reversal. Technical indicators have once again emerged from the over sold levels and is below 50 giving way for the price to decline again. Price is capped by the 20 SMA and continues to maintain a bearish slope.
The immediate resistance is at 1.2207 followed by 1.2292, we are carefully monitoring this pair as the May's speech is one hour away (5:15 PM IST) and looking for a sell in the 30 minutes chart.
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