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Uncle Sam’s CPI report is up for release, so I’m counting on big moves for this dollar pair.

Do you think Cable’s downtrend will resume?

Before moving on, ICYMI, yesterday’s watchlist looked at USD/CAD’s trend line break-and-retest setup. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Japanese wholesale inflation reached a record high of 9.0% y/y in November

New Zealand Business NZ manufacturing index down from 54.2 to 50.6

PBOC sets CNY reference rate at record levels, yuan volatility spikes

German final CPI unchanged at -0.2% as expected

U.K. monthly GDP printed 0.1% uptick in October vs. 0.4% forecast

U.K. industrial production sank 0.6% vs. projected 0.1% dip

U.K. manufacturing production flat vs. projected 0.2% increase

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. headline and core CPI at 1:30 pm GMT
U.S. preliminary UoM consumer sentiment index at 3:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: GBP/USD

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

Things are about to get busy for the Greenback, as the U.S. economy will be releasing a highly-anticipated CPI report.

This might set the tone for Fed tightening plans in the upcoming year, so any surprises could spur big moves for dollar pairs.

Analysts are expecting to see a dip in price pressures, with the headline reading likely to fall from 0.9% to 0.7% and the core figure to slide from 0.6% to 0.5% in November.

Stronger than expected results could trigger a rally for the dollar and allow GBP/USD to bounce off its bearish channel resistance.

This happens to be right smack in line with the 100 SMA dynamic resistance and a former support zone where more sellers might be hanging out.

The 100 SMA is below the 200 SMA to suggest that resistance is more likely to hold than to break while Stochastic looks ready to head south from the overbought zone.

If the ceiling holds, the Fibonacci extension tool shows the levels that pound bears could aim for next. The 61.8% Fib is looking like a strong support area near the swing low and the bottom of the channel at the 1.3150 minor psychological handle.