• GBP/USD is struggling in expecting its recovery above 1.2430 amid China-Taiwan tensions.
• The US Dollar Index (DXY) is putting efforts into defending its crucial support of 102.00 after a marginal correction.
• GBP/USD is expected to extend its correction to near the lower portion of the Rising Channel chart pattern.

The GBP/USD pair is hovering below 1.2430 after a recovery move from the round-level support of 1.2400 in the early Asian session. Expectations for a corrective move in the Cable look healthy as China-Taiwan tensions are deepening further. On late Sunday, the Taiwan Defence Ministry reported that they spotted 58 Chinese aircrafts, which also includes nine ships. Meanwhile, State Media reported that the Chinese military told about keeping the momentum of drilling around Taiwan Island.

The US Dollar Index (DXY) is putting efforts into defending its crucial support of 102.00 after a marginal correction. It is likely that geopolitical tensions would provide some support to the USD Index. The USD Index is likely to remain in action ahead of the release of the United States Consumer Price Index (CPI) data, which will release on Wednesday. Headline inflation is expected to soften further as oil prices remained weak in March, however, core inflation might accelerate as anticipated.

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