GBP/USD keeps pushing lower, near 1.2860

The Sterling keeps losing the grip on Tuesday and is now forcing GBP/USD to test the area of weekly lows in the vicinity of the 1.2860 region.

GBP/USD weaker post-CPI

Cable continues to shed ground today as selling orders keep building up following lower-than-expected UK inflation figures for the month of July.

Recall that UK’s headline consumer prices rose at an annualized 2.6% during last month and 2.4% when stripping food and energy costs, both prints coming in below initial estimates.

In addition, the greenback remains firm during the first half of the week, testing fresh tops when tracked by the US Dollar Index.

In the US calendar, July’s retail sales are next on tap ahead of tomorrow’s FOMC minutes. Additional publications include the NAHB index, the regional manufacturing gauge by the NY Empire State index, business inventories and TIC flows.

GBP/USD levels to consider

As of writing the pair is losing 0.65% at 1.2879 and a breakdown of 1.2859 (100-day sma) would expose 1.2846 (61.8% Fibo of 1.2587-1.3266) and finally 1.2808 (low Jul.12). On the other hand, the next hurdle emerges at 1.3027 (10-day sma) followed by 1.3052 (21-day sma) and then 1.3063 (high Aug.7/10-day sma).