GBP/USD showed a false break above 1.2550 with an impulsive selling on Monday. After the Friday when the market remained above the resistance level of 1.2550 with a daily close, the bulls were ready to attack from the retest but sellers took out the level by storm. Today GBP had Net Lending to individuals report which was equal to the forecast of 4.9B but M4 Money Supply which was forecasted to be at 0.5% was published with a negative figure -0.3% as well as the Mortgage Approvals were also negative at 68K which was forecasted to be at 70K at least. On the other hand, FOMC Member Evans is currently speaking about the interest rates decisions today which look quite positive for the currency. Additionally, US Pending Home Sales report is going to be published today which previously was at -2.8%. Today it is forecasted to be positive at 2.3% and along with this high-impact event Crude Oil Inventories is going to be published today which previously was at 5.0M but today it is forecasted a bit less at 1.2M. Overall, as the USD news gets published we might see a good amount of volatility in the market and it is expected that USD is going to be stronger after the reports.

Now let us look at the technical view, the price is currently at the support area of 1.2350-1.2420. As the USD events unfold, if we see the price closing below the lower support of 1.2350 with a daily close below it then we will be looking forward to sell with a target towards 1.22. On the other hand, if the price rejects from the support area and closes above the upper support level of 1.2420 with a bullish daily close we will be looking forward to buy with a target of 1.25 resistance.