The pair is down 0.4% on the day to 1.1878 at the moment and is poised for a third straight day of declines. The bounce higher after the US CPI data last week failed to breach the key trendline resistance (white line) and it has been one-way traffic since as the dollar recovers strongly through to this week.

On the pound side of the equation, we saw UK GDP suffer a contraction in Q2 and annual consumer inflation hitting a 40-year high above 10% in the past week. Retail sales data was slightly better today but it isn’t as much comfort as the economic outlook remains rather dire to say the least.