GBP has been weakening against USD since the general election effect on Friday. There has been a good amount of tension going as the things did not go as planned by May for the election and May is currently considered as the weak leader to negotiate with the Brexit Tension in the future. Today we have GBP CPI report to be published which is expected to be unchanged at 2.7% as well as RPI report is also expected to be unchanged at 3.5%. By the side, PPI input report is expected to be worst at -0.5% which previously was at 0.1%. During the events, a good amount of volatility is expected but there is higher chance for GBP to provide negative reports tomorrow and add more on the further weakening against USD. On the USD side today we have PPI report to be published which is expected to show a decrease to 0.0% from 0.5% previously and Core CPI is also expected to decrease to 0.2% from 0.4% previously. As the tension on GBP is on a hike, USD is expected to gain further in the coming days despite the recent negative reports published on the USD side.

Now let us look at the technical view, the day was started with a gap and observed to retest off the resistance area of 1.2750-1.2800. Price has broken below the corrective structure support and impulsive selling is expected in this pair. Currently the market is in bearish bias and further down move towards 1.2550 is expected in the coming days. The bearish bias is expected to continue until the price breaks above 1.2800 with a daily close.