GBP/USD challenging lows near 1.3220, CPI eyed

The British pound is trading on the defensive today, sending GBP/USD to the lower end of the range near 1.3220.

GBP/USD attention to CPI

The pair is giving away part of yesterday’s advance to levels above the 1.3300 handle, returning to the low-1.3200s ahead of the publication of key inflation figures in the UK for the month of June.

Prior surveys expect UK’s consumer prices to have risen 0.2% on a monthly basis and 0.4% over the last twelve months, while Core CPI is seen advancing 1.4% YoY. Later in the session, MPC member B.Broadbent is due to speak as well.

GBP/USD levels to consider

As of writing the pair is retreating 0.25% at 1.3223 facing the next support at 1.3101 (low Jul.14) followed by 1.2849 (low Jul.11) and then 1.2797 (20916 low Jul.6). On the other hand, a break above 1.3481 (high Jul.15) would aim for 1.3535 (high Jun.29) and finally 1.3646 (38.2% Fibo of 1.5020-1.2796).