On Tuesday, the British pound declined by 42 points and nearly reached the target support level at 1.3369. Today, the UK will release June inflation data. Both the core and headline CPI are expected to remain unchanged at 3.5% year-over-year (y/y) and 3.4% year-over-year (y/y), respectively. Therefore, the technical picture of the currency warrants increased attention.

A daily close below 1.3369 will open the path toward the next target at 1.3269. The Marlin oscillator is starting to turn upward, indicating a significant probability of a correction. The correction may be limited by the 1.3460 level, which served as support on June 10 and 11. This level also coincides with the balance line (red moving average).

On the four-hour chart, the price is moving within a narrow green price channel. However, it is unlikely that this channel will last long, so a breakout is expected in the near term. Since the Marlin oscillator remains close to the zero line, a downward breakout appears more likely. However, special attention should be paid to the lower boundary of the price channel at 1.3342. If today's close is not below this level, a downward breakout may turn out to be a false move.