GBP/USD ahead Tuesday's UK data: A decline towards post-Brexit low?
Today in the United Kingdom we'll have a bunch of events' release that should help to add volatility during this week on GBP pairs. At 08:30 GMT, will be published the CPI, which is the consumer indicator inflation and that should see a change from 0.2% to -0.1% in the monthly basis reading. Also, PPI input is expected to post a decline during July's reading, with a 1.0% forecast from the 1.8%, and lastly, but not less: UK unemployment rate, that should see a slight increase from 4.9% to 5.0%, according to the market's consensus.
Our technical picture for GBP/USD at H1 chart is calling for more declines, as the pair is currently trading inside a bearish channel below the 200 SMA. The nearest support is located at the 1.2850 level and we should consider it as the last hurdle before to reach the lowest level post-Brexit, around the 1.2795 price zone. That scenario should happen if UK data comes worst-than-expected. By another hand, a recovery should be limited to the 1.2950 level.