GBPUSD slips back below 1.32 on thin Monday volumes

• GBP/USD pulled back on Monday, snapping a seven-day win streak.
• UK market flows were crimped with an extended weekend.
• Investors forced to wait until the end of the week for meaningful data.

GBP/USD trimmed recent gains to kick off the new trading week, slipping back below the 1.3200 handle on Monday and wrapping up a seven-day winning streak that took the pair up over 3% from 1.2800 to a 29-month high of 1.3230.

Forex Today: A September rate cut now looks at US data releases

UK markets were shuttered on Monday for a banking holiday, leaving Pound Sterling flows thin and giving the Greenback a further boost. Markets are paring back recent risk appetite after a splurge on the heels of the Federal Reserve all but confirming that rate cuts were coming in September, barring any drastic shifts in economic data.

The economic calendar for the upcoming trading week is expected to be relatively quiet. On Thursday, Q2 US Gross Domestic Product (GDP) figures are expected to remain steady at 2.8% on an annualized basis. On Friday, the focus will be on July's US core Personal Consumption Expenditure - Price Index (PCE) inflation, which is forecasted to hold steady at 0.2% MoM. The YoY PCE inflation figure is anticipated to increase to 2.7% from 2.6%. Despite this, investors believe that inflation is close enough to the Fed's 2% target to potentially lead to a rate cut in September.

In July, US Durable Goods Orders unexpectedly rose by 9.9% MoM, surpassing the forecast of 4.0% and reversing the previous month's revised -6.9% contraction.

However, concerns persist as excluding transportation spending, Durable Goods Orders actually decreased by -0.2% MoM, worse than the anticipated 0.0% and the previous month's 0.1%, which was revised down from 0.5%.

GBP/USD price forecast

Cable pulled back after a stellar run up the charts, chalking in nearly 4.5% growth over a mere eleven trading days. Monday looks set to bry the latest bull run, with prices wobbling at the top of an extreme overextension. 

The immediate hurdle for short sellers will be to drag GBP/USD bids back down to the 50-day Exponential Moving Average (EMA) at 1.2860, and it might take a few extra attempts to kick off a bearish trend firm enough to bring price action back down to the 200-day EMA near 1.2700.

GBP/USD daily chart