Consumer price index (which shows the cost of living) for the month of April in the UK is about to be released by Wednesday early. The inflation numbers will be the catalysts for the pair GBP/USD as it considers the survey period that includes the lockdown of the virus period.

CPI inflation is expected to reach 0.8% on an annual basis, less than the previous of 1.5%. The Core CPI which excludes food and energy items are likely to have risen by 1.5% YoY last month compared to the previous rise of 1.6%.

Amid all these, USD’s increase in strength against its counter currencies puts pressure on the pair these factors encourage us to predict a bearish trend for the pair.

GBP/USD 4 Hour Chart:

Support: 1.2192 (S1), 1.2133 (S2), 1.2021 (S3).

Resistance:  1.2304 (R1), 1.2356 (R2), 1.2467 (R3).

We expect a bearish flow for the pair, If the bear trend continues we could see GBP/USD breaking 1.2192 (S1) and aim for next 1.2133 (S2) and if the bull markets takes over then we can expect it to break at 1.2304 (R1) and aim for 1.2356 (R2).