GBP/USD softens ahead of data-heavy week

• GBP/USD eased lower on Monday, falling 0.4% to begin the trading week.
• Greenback bidding rebounds after last week's sharp downside.
• A quiet start to the week gives way to plenty of meaningful releases and key policy statements.

GBP/USD saw a softer start to the new trading week, easing back around four-tenths of one percent through the opening market sessions. The US Dollar (USD) pared some of last week's overall losses, trimming near-term gains for the Pound Sterling (GBP) on Monday.

The week starts on a quiet note, with little of note on the data docket. That all changes on Wednesday, with a fresh salvo of key economic data from the United Kingdom (UK) and the start of this year's Jackson Hole Economic Symposium hosted by the Federal Reserve (Fed) Bank of Kansas.

UK Consumer Price Index (CPI) inflation figures for July will drop on Wednesday, followed by Purchasing Managers Index (PMI) activity survey results due for both the UK and the US on Thursday. Friday will also bring another update to UK Retail Sales figures, but the key event this week will be this year's Jackson Hole central banking mega-event. Jackson Hole will kick off on Thursday, but the key event will be Fed Chair Jerome Powell's presentation at the symposium on Friday.

US inflation data sparked some fresh concerns among global markets last week, however, overall investor sentiment is still pricing in a Fed rate cut on September 17. According to the CME's FedWatch Tool, rate traders are pricing in over 80% odds of at least a quarter-point rate cut next month, with nearly 90% odds of a follow-up cut in December.

GBP/USD price forecast

Monday's fresh bearish momentum has put GBP/USD on pace for a fresh challenge of technical support at the 50-day Exponential Moving Average (EMA) near 1.3450. However, Cable is still firmly entrenched deep in bull country, with the pair trading well north of the 200-day EMA near 1.3170.

GBP/USD daily chart