Key events today:

22.04 06:00 UTC: GBP – Consumer Price Index.

The Pound is trading near 1.3505–1.3515 against the Dollar, but the external background is not yet providing Sterling with enough room for a confident continuation of its growth. The American currency remains in demand amid uncertainty surrounding the conflict in the Middle East and following strong US consumer spending data. For GBP/USD, this means that despite the relative stability of the Pound, pressure from the Dollar persists.

An additional factor of caution for Sterling was the fresh UK labor market data. Wage growth slowed to 3.6%, and the decline in unemployment to 4.9% was partly due to an increase in economic inactivity rather than a noticeable expansion in employment. This combination reduces market confidence in the sustainability of domestic demand.

Today, market participants are awaiting the publication of March inflation data for the UK. Until the report is released, the Pound is unlikely to receive strong domestic support, especially since a Reuters poll showed expectations that the Bank of England will maintain the rate at 3.75% until the end of the year. With a slowing economy and continued growth in energy costs, the preference for GBP/USD in the current session remains on the downside.

Recommendations: SELL 1.3510, SL 1.3540, TP 1.3420.