• The Sterling surged higher against the greenback on Tuesday, extending above 1.4300 its highest level in more than a week, before retreating back towards 1.4256 levels in the early US session.
   
• The GBP got a boost from UK CPI data which showed consumer prices rose to 0.5 percent compared with a year ago, after a 0.3 percent increase in February.
   
• The BoE will have its monetary policy meeting on Thursday, along with the release of the inflation report and interest decision.
   
• BoE is likely to maintain the Bank Rate and stock of purchased assets unchanged at 0.50% and GBP375bn, respectively.
   
• To the upside, the strong resistance can be seen at 1.4264, a break above this level would expose to cable to next resistance level at 1.4321.
   
• To the downside major support can be seen at 1.4220, a break below will open the door towards next level at 1.4168.
  
  Resistance Levels
  
  R1: 1.4264 (50% Retracement Level)
  
  R2: 1.4321 (March 4th high)
  
  R3: 1.4360 (38.2% Retracement Levels)
  
  Support Levels
  
  S1: 1.4220 (Daily lows)
  
  S2: 1.4168 (61.8% Retracement Levels)
  
  S3: 1.4100 (Psychological levels)