GBP/USD: a big week coming up and bears waiting to pounce - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair fell down to 1.2865 this Monday, with no certain catalyst beyond the move.

Key Quotes:

"But self Pound's weakness. The UK released no macroeconomic data, although will offer different inflation figures on Tuesday, including CPI, PPI and the Retail Price index for July. The readings will be closely watched as it will be post-Brexit data, seizing the effect of the UK's decision to leave the EU.

Inflation is expected to have fallen by 0.1% during the month, and to have held steady around 0.5% year-on-year, but market's forecasts seem too optimistic and  a negative surprise  could see the pair falling below the 1.2793 multi-decade low posted last July.

In the meantime, the pair holds below the 1.2900 level, with the short term picture supporting a bearish extension during the upcoming session, as in the 1 hour chart, the price is being capped by a bearish 20 SMA, currently at 1.2895, whilst the technical indicators remain flat within negative territory. In the 4 hours chart, the 20 SMA has accelerated its decline above the current level, now offering a dynamic resistance around 1.2940, whilst the technical indicators hold within negative territory, with no directional strength."