short

The GBP/USD pair is juggling in a narrow range of 1.3156-1.3170 as the market participants are waiting for the unfolding of the UK’s Consumer Price Index (CPI) numbers, which are due on Wednesday. A preliminary estimate for the UK’s CPI is 5.9%, much higher than the previous print of 5.5%. With technical indicators on the daily chart holding in the bearish territory, sustained weakness below the 1.3100 handle would make the pair vulnerable to challenge the YTD low, around the 1.3000 psychological mark. Some follow-through selling has the potential to drag the pair further towards the 1.2950 intermediate support en-route the 1.2900 mark.