WEAKENING BRITISH POUND LOOKS TO UK INFLATION FIGURES AND DUP MEETING
Uncertainty in UK politics has caused the GBPUSD pair to substantially weaken back towards the former weekly low at 1.2638. The pair is currently subdued, barely trading above 1.2650, ahead of UK inflation data and Prime Minister Theresa May's coalition talks with DUP head Arlene Foster.
A failure for the Conservative Party to reach a deal with the DUP Party, would likely be taken as GBPUSD negative, with further downside below the 1.2600 level likely.
Should the pair reach a deal, a move above back above 1.2700 may be likely, with 1.2740 and 1.2790 level back in focus. However the appetite for buying GBPUSD pair ahead of tomorrow's Federal Reserve Interest rate decsion may be limited.
The M5 chart shows the pair is strongly bearish, with 1.2643 and 1.2638 near term support, with recent swing highs at 1.2660 and 1.2680 capping the upside for now, ahead of CPI data.
The daily time frame chart indicates the pair is moving closer to it's final support level at 1.2631, with a series of daily closes below 1.2632 likely to accelerate selling, moving the pair towards the daily time frame 200 period moving average, currently located at 1.2519.