GBP/USD consolidative below 1.2200 ahead of UK data

The Sterling has started the week on a soft note today, dragging GBP/USD to the area of session lows near 1.2180.

GBP/USD focus on data, Carney

The pair is following south the rest of the risk-associated assets on Monday, as the greenback is attempting a recovery after Friday’s sharp pullback.

Anyway, GBP remains vulnerable in a context of a generalized solid tone from the US dollar backed by growing expectations of a Fed move by year-end, a potential ‘hard-Brexit’ scenario and now increasing uncertainty regarding the probability that Governor M.Carney could step down. In recent comments, Carney expects to make his decision as soon as this week.

Later in the session, UK’s docket includes BoE Credit Lending figures, M4 Money Supply, Mortgage Approvals and Net Lending To Individuals.

Across the pond, inflation figures tracked by the PCE (the Fed’s preferred gauge) are due along with Personal Income/Spending during September.

In addition, speculative positioning keeps weighing on the British Pound, as net shorts remain at record levels although they have been trimmed to 5-week lows during the week ended on October 25. Furthermore, open Interest has climbed to the highest level since mid-March.

GBP/USD levels to consider

As of writing the pair is losing 0.08% at 1.2182 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a break above 1.2280 (20-day sma) would aim for 1.2327 (high Oct.18) and finally 1.2377 (high Oct.11).