GBP/USD finding some support near 1.30 handle ahead of Carney

Having refreshed yearly tops near 1.3125 level, the GBP/USD pair came under some intense selling pressure and tumbled around 120-pips to the 1.3000 neighborhood post softer UK inflation figures.

The pair witnessed a sharp reversal from 10-month tops after the UK headline CPI recorded its first decline since October 2016 and unexpectedly fell to 2.6% y-o-y in June as against consensus estimates pointing to a reading of 2.9%. Today's weaker inflation print now seems to have dampened chances of an imminent BOE interest-rate hike prospects and dragged the British Pound lower across the board.

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Ahead of the UK data, the pair climbed to its highest level since September and was being supported by persistent US Dollar selling bias in wake of yet another rejection of a revised version of Trump's health care bill, which fueled concerns over his ability to deliver on promised pro-growth reforms. 

The pair has now bounced off lows and is currently trading around 1.3015-20 region as focus shifts to the BOE Governor Mark Carney's scheduled speech, which might provide some fresh insight over the central bank's near-term monetary policy outlook and trigger some fresh volatility across GBP pairs. 

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "Declines are expected to remain moderate, given the absence of dollar's demand, but a downward acceleration below 1.3000 should lead to a test of the 1.2960 region, while below this last, the slide can extend down to 1.2920. The immediate resistance comes at 1.3060, Monday's low, with a recovery above it favoring further gains towards the 1.3110/20 region."