‘Due to the level of expectation in the market for a big CPI number, the bigger risk is a disappointing number that could weigh on the Pound. Key support levels to watch include 1.2900 for GBP/USD and 0.8500 for EUR/GBP.’ – City Index (based on PoundSterlingLive)
Pair’s Outlook
Monday ended with the Sterling once again being unable to post solid gains against the US Dollar, thus, prolonging its consolidation trend for another day. Nevertheless, the Cable has the opportunity to reach the trend’s resistance line at 1.30 today and possibly even break it. Although technical indicators are in favour of the positive outcome, it still remains somewhat unlikely, as the Pound is eventually expected to test the wedge’s lower boundary near 1.28. Assuming the pair consolidates until next week, a good confirmation of both trend support’s would be achieved around 1.2850—where they coincide.
Traders’ Sentiment
Market sentiment reached a perfect equilibrium today, while pending orders are close to that as well, with 51% of them set to sell the British currency.
