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The majors are in for a busy day with U.K.’s CPI, Biden’s inauguration, and BOC’s statement due in a few hours!

Today I’m looking at GBP/USD for a short trading opportunity.

Before I show you the chart, though, lemme list down the top headlines that rocked the markets during the late U.S. and early Asian sessions:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

What to Watch: GBP/USD

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

Asian equities may have gotten a boost from Yellen’s “act big” plans for fiscal stimulus, but Asian session forex traders have started to take some profits.

That doesn’t mean that the risk rally is over, though! The U.K. is expected to print stronger inflation numbers in December, which would be a small relief given the latest lockdown measures in the country.

If London session traders take the CPI release as a catalyst for more risk-taking, then we could see GBP/USD jump to its 1.3700 range resistance on the 1-hour time frame. Keep close tabs on the strength of any upswing, as it could also lead to an upside breakout.

If today’s CPI release disappoints, however, or if early London session traders choose to take some more profits ahead of Biden’s inauguration and BOC’s statement, then Cable could dip back down to the mid-range levels near 1.3600 or even had towards the 1.3450 range support.