Sterling spent Monday's session in a decline though there were no major data releases. Area above 1.52 handle still offers plenty of resistance, with pair pulling back to 1.51 handle. However, we can expect plenty of volatility tomorrow, with UK CPI and PPI figures being released.
Weaker than expected figures would push pair back to 1.5050 handle, which is next major support, while better than forecasted data would bring back to 1.52 handle where we can expect significant amount of resistance. On a long-term basis, we believe that pair will remain in consolidation range between 1.50 and 1.52 handle until Fed's interest rate decision. With that being the case we would remain on the sidelines.
