GBP/USD pair is extending the upside momentum in the early European session, touching the highest level in three days near 1.3775. Looking at the technical picture, a sustained strength beyond 200-hour SMA, around the 1.3780 region might be seen as a trigger for intraday bullish traders. That said, a modest US dollar rebound from three-week lows – amid a modest pickup in the US Treasury bond yields – might cap gains for the GBP/USD pair. The EUR/USD pair’s ability to stay strong beyond 200-day SMA, backed by the strongest bullish MACD signals since early December 2020 suggests the quote’s further upside. Though, a clear run-up past-50-day SMA level of 1.1965 becomes necessary for the EUR/USD buyers before confronting a horizontal area comprising multiple levels marked in March, around 1.1988-95. Meanwhile, a daily close below the 200-day SMA level of 1.1906 can recall EUR/USD sellers targeting the early March low near 1.1835. The dollar index was down 0.2% at 91.683, falling to its lowest level since March 22. USD/JPY fell 0.2% at 108.83, touching its lowest level in three weeks, while the risk-sensitive AUD/USD rose 0.5% to 0.7676. The U.S. consumer price index jumped 0.6% in March versus the previous month, the largest gain since August 2012, and rose 2.6% from a year earlier, both 0.1 percentage points above market expectations. While these figures were above consensus expectations, there were some in the market that expected a sharper rise in inflation given the extent of pent up demand on the back of hefty fiscal stimulus and a successful vaccination program.