The pair is behaving well with respect to the technicals as the surge higher last week after the US CPI data was contained by the trendline resistance (white line) before falling back towards 1.2000 again today.
So far, the first attempt by sellers is falling short as price action is holding up amid a light bounce back to 1.2020 levels. But with the dollar seen firmer across the board and the pound failing to really see much positive sentiment, it may just be a matter of time.
A firm break below the figure level will pave the way for a retest of 1.1800 with the year's low at 1.1759 also a target.
As things stand, the dollar seems poised amid a couple of key technical considerations such as this one in USD/JPY. I reckon it is going to take a push from the bond market to really set things off, so keep your eyes peeled for that just in case.
