GBPUSD could be ready to resume its downtrend soon, as price is closing in on the top of its falling channel on the hourly chart. This lines up with the 61.8% Fib and 100 SMA dynamic inflection point.

To top it off, the channel resistance is also in line with the 1.3250 minor psychological mark where more sellers might be ready to join in the selloff. If it holds as resistance, GBPUSD could resume the slide to the swing low at 1.3162 or the channel bottom closer to 1.3150.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. RSI is still heading higher, though, so there may be some more room for gains before overbought conditions are met.

Stochastic is already indicating overbought conditions or exhaustion among buyers, so turning lower would mean that sellers are returning.

There are no major reports due from the UK today, so any big moves could be spurred by the US CPI release.

Headline inflation is slated to fall from 0.9% to 0.7% while the core reading could dip from 0.6% to 0.5%. Weaker than expected results could dash hopes of Fed tightening in mid-2022, which might mean more downside for the dollar.

On the other hand, stronger than expected inflation figures might spur a strong rally for the Greenback, as this could keep the Fed on track towards hiking interest rates soon.

Apart from that, the dollar is also drawing support from risk-off flows since the US currency continues to function as a safe-haven while investors worry about the Omicron variant. A return in risk-taking, however, could mean downside for the lower-yielding currency if traders switch back to higher-yielding assets.