GBP/USD unable to break below 1.25 amid subdued trading action

Although the GBP/USD pair edged lower in the US afternoon, it hasn't been able to gather enough bearish momentum to break below 1.25. As of writing, the pair was losing 29 pips, or 0.23%, on the day at 1.2510.

The US Dollar Index (DXY) – which tracks the greenback vs. its main rivals, remains below 100.50 despite a recent rise and helps the pair cling to the 1.25 support. 

The next potential catalyst for the pair will come tomorrow when the retail sales figures accompanied by the CPI will be released during the NA session from the United States. Until then, the pair could continue to remain in a horizontal trading band as the UK will be on holiday due to Easter.

Technical outlook

The pair faces the initial resistance at 1.2175 (daily high) followed by 1.2615 (Mar. 27 high) and 1.2700 (psychological level). On the flip side, supports are located at 1.2500 (psychological level), 1.2450 (Apr. 6 low) and 1.2390 (100-DMA).