Important events today:

13:30 UTC – US: US inflation for April.

We use the correction in this currency pair to open Buy positions for two reasons. First, I expect the release of US inflation data better than the median forecasts, which will have a negative impact on the value of the dollar. This week the inflation expectations of the population were released, which fell to the lowest since May 2021. The producer price index fell to 2.7% in March. The Fed has been cutting assets on its balance sheet and raising interest rates since last June, and overall inflation in the economy and industrial inflation have been about the same since then. Thus, we can expect better-than-median data today.

Second, the uptrend in the oil market will provide additional support to the pound, as assets correlate with each other. Last week, investors were selling oil contracts amid concerns over the U.S. banking crisis, but this week, the U.S. Treasury and Federal Reserve reassured the public that the industry will be helped to the necessary extent and traders rushed to buy cheaper black gold.

Recommendations: Buy 1.2580/1.2550 and TP 1.2660.