Key Events Today:

06:00 UTC – GBP: Consumer Price Index (CPI).

The GBP/USD pair continues to sketch worrying lines near the 1.3000 mark, as cable traders shift into the mid-range after bullish momentum faded in the short term. A confirmed pullback is still pending, with both pound and dollar traders awaiting clearer signs of economic resilience from the UK and US economies.

On Tuesday, the US Conference Board reported a further rise in one-year inflation expectations, now at 6.2% in March compared to 5.8% in February. Consumers remain deeply concerned about persistently high prices for essential goods like eggs, and inflation-related risks tied to Trump-era tariffs. Furthermore, the CB’s Consumer Confidence Index for future expectations dropped to a 12-year low of 65.2 in March, well below the 80.0 level often seen as a recession signal.

Early Tuesday, Moody’s issued a stark warning, stating that the fiscal sustainability of the US has “deteriorated,” with a spotlight on the rising costs of servicing national debt. Moody’s also noted a multi-year downward trend in fiscal resilience, likely to draw criticism from Donald Trump and his administration, who are currently pushing Congress for a major debt ceiling increase.

Inflation data from the UK is due early Wednesday and could boost the pound. Consensus forecasts expect annual CPI to ease to 2.9% year-over-year from 3.0%, while the monthly figure is projected to rise to 0.5% in February after a 0.1% decline in January. Traders will watch closely for any major revisions to previous data.

Recommendation: SELL 1.2905, SL 1.2985, TP 1.2815.