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GBP/USD continues to adjust lower as markets await UK July inflation data due 0830GMT.
- A disappointment in the data could weigh on the cable, pair could dip to 1.5535 (Aug 12 low)
- Negative UK CPI would be blow for hawks advocating BoE hike before 2016
- Cable is currently trading at 1.5572, with the day's high at 1.5597 and lows by 1.5565, Techs indicate further weakness
- Price action is just above daily cloud, which is seen thinning ahead, 10/21 DMA at 1.5580/78 have been breached, 30 DMA up next at 1.5565
Resistance Levels:
R1: 1.5595 (Hourly High Aug 18)
R2: 1.5691 (Daily High Jul 29)
R3: 1.5701 (61.8% of 1.5930 - 1.5330)
Support levels:
S1: 1.5565 (30 DMA)
S2: 1.5542 (Daily Cloud top)
S3: 1.5535 (Daily Low Aug 12)
