GBPUSD - Broken neckline, but waiting for BoE inflation data

Following on from my last post on the 23Oct, we have seen a confirmed rejection of the 1.6250 level, making a 2 month low yesterday, breaking the neckline of the double top chart formation.  I would expect this weakness to persist on the short term and for the pairing to trade back down towards the 1.5700/1.5750 support area, from a technical point of view.

The quarterly BoE inflation is due later today so the market will be very much subdued before this publication at 10.30am GMT.



On a break below the 1.5700 level, it would give us the green light for the 50% Fibo retracement level from the recent rally at 1.5540.  The MACD confirms this as it dropped below the 0 mark recently and implying and downtrend direction.  However if the situation does change the key resistances to pay attention to are the high made on the 7th Nov at 1.6114 and September & October highs of 1.6250, the later beginning a much strong level of the two.

Charts sourced from ig.com