S&P500 futures are showing some gains in the early Asian session, indicating some strength in equities ahead of earnings season.

On a two-hour scale, GBP/USD is expected to extend its correction to near the lower portion of the Rising Channel chart pattern. The 20-period Exponential Moving Average (EMA) at 1.2436 is restricting upside attempts from the Pound Sterling.

Meanwhile, the Relative Strength Index (RSI) (14) is defending its downside around 40.00. A break below the same would trigger the bearish momentum.

For a downside move, the Cable needs to deliver a breakdown of the Rising Channel pattern below March 23 high at 1.2343, which will expose the asset to the round-level support of 1.2300 followed by March 14 high around 1.2200.

Alternatively, a decisive move above Friday’s high at 1.2453 will drive the asset towards April 04 high at 1.2525. A break above the latter would further drive the Cable toward the round-level resistance at 1.2600