GBP/USD - Focus on the 23.6 % Fib support of 1.2965 & US CPI

The sell-off in the GBP/USD following the bearish rising wedge pattern breakdown appears to have run out of steam around 1.2965, which is the 23.6% Fib support of the rally from 1.1986 to 1.3268. 

Focus on US CPI

The US CPI reading due at 12:30 GMT is expected to show the cost of living ticked higher to 0.2% m/m in July. The core reading is seen rising 0.2% m/m vs. previous reading to 0.1%. A better-than-expected core CPI data could yield a break below the key 23.6% Fib support of 1.2965. 

On the other hand, the spot could stage a sharp rebound from 1.2965 if the US core CPI reading prints below estimates. 

GBP/USD Technical Levels 

The spot clocked a low of 1.2952 yesterday before recovering to 1.2990 in Asia. A break above 1.3008 [1-hour 100-MA] would expose resistance at 1.3048 [May 18 high] and 1.3093 [1-hour 200-MA]. On the other side, breach of support at 1.2965 [23.6% Fib R of 1.1986-1.3268] could yield a sell-off to 1.2932 [50-DMA] and 1.29 [zero levels].