GBPUSD Analysis: Prepares for double data release

A release of latest update on the British inflation sent the cable to test support zone near the weekly S1 at 1.3090. However, by the end of the day the Pound managed to recover and returned back to the 50% Fibonacci retracement level at 1.3180.
Due to support formed by a combination of the 55-, 100- and 200-hour SMAs the pair is expected to spend first half of this trading session between the 1.3180 and 1.3125 marks. These barriers have a good chance to withhold the rate even during release of the UK earnings data.
However, the further movement of the cable is difficult to project, as it will heavily depend on release of the US inflation and retail sales data.


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