• GBP/USD is sensing barricades around 1.2080 as investors await US CPI data.
  • Downbeat oil prices have trimmed US CPI forecasts and Fed’s rate hike hopes.
  • A lower consensus for BRC Like-for-Like Retail Sales in times of higher inflation indicates vulnerable demand.

The GBP/USD pair is struggling to cross the immediate hurdle of 1.2080 and has marked its territory after a sheer downside move from the critical hurdle of 1.2130. The cable oscillates in a narrow range of 1.2068-1.2081 from the late New York session and is likely to remain topsy-turvy as investors are awaiting the release of the US Inflation.

Wednesday’s US Consumer Price Index (CPI) is likely to shift lower to 8.7% on an annual basis as oil prices have remained vulnerable in July. Accelerating recession fears in the Western economies and China have trimmed the demand forecasts vigorously, forcing market participants to dump oil longs.

The investing community is aware that the volatile oil prices drove the price rise index higher. Now, downbeat oil prices are diminishing the inflation forecasts and the continuation of a 75 basis point (bps) rate hike odds by the Federal Reserve (Fed). While the core CPI that doesn’t inculcate volatile oil and food products is expected to elevate to 6.1% from the prior release of 5.9%.

On the UK front, investors are awaiting the release of the Gross Domestic Product (GDP), which is due on Friday. The economic data is expected to plummet to 2.8% vs. 8.7% reported earlier on an annual basis. An occurrence of the same will send the pound bulls on the back foot.

But before that, the release of the British Retail Consortium (BRC) Like-For-Like Retail Sales holds significant importance. The economic data may plunge sharply to -8.4% vs. -1.3% reported last month. A significant drop in Retail Sales, in times when the inflation rate is accelerating, displays that the decline is higher than the absolute and relative plunge. Higher inflation should elevate Retail Sales data but a decline vulnerable retail demand in the economy.

GBP/USD

Overview
Today last price 1.2082
Today Daily Change 0.0026
Today Daily Change % 0.22
Today daily open 1.2056
 
Trends
Daily SMA20 1.2031
Daily SMA50 1.218
Daily SMA100 1.2478
Daily SMA200 1.2949
 
Levels
Previous Daily High 1.2164
Previous Daily Low 1.2003
Previous Weekly High 1.2294
Previous Weekly Low 1.2003
Previous Monthly High 1.2246
Previous Monthly Low 1.176
Daily Fibonacci 38.2% 1.2065
Daily Fibonacci 61.8% 1.2102
Daily Pivot Point S1 1.1985
Daily Pivot Point S2 1.1914
Daily Pivot Point S3 1.1825
Daily Pivot Point R1 1.2146
Daily Pivot Point R2 1.2235
Daily Pivot Point R3 1.2306

 

 

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