The sterling finds support from upbeat readings in the UK’s CPI and retail sales.
The rally came under pressure in the supply zone around 1.2600. A retreat below 1.2500 has shaken out some weak hands but the sentiment remains upbeat. A subsequent bounce off the demand zone (1.2470) suggests solid interest in keeping the pound afloat.
A break above the said resistance would trigger momentum buying and open the door to last October’s high at 1.2760. On the downside, a deeper retracement would test the next support at 1.2380.
