GBPUSD is trending lower on its hourly time frame, forming lower highs and lower lows inside a falling channel. Price looks ready to test nearby resistance levels marked by the Fib retracement tool.

The 50% level lines up with the channel top near the 1.3500 major psychological mark while the 38.2% level is close by at the 1.3450 minor psychological level. The 61.8% Fib is at 1.3512 in line with the 200 SMA dynamic resistance.

On the subject of moving averages, the 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. Stochastic is also in the overbought zone to signal exhaustion among buyers, so turning lower would confirm that sellers are returning.

In that case, GBPUSD could slide back to the swing low at the 1.3350 minor psychological mark or the channel bottom at the 1.3300 major psychological level.

The UK is due to release its CPI and retail sales figures this week, with inflation likely to show another strong surge in price pressures. This could fuel speculations that the BOE is bound to tighten monetary policy soon since they need to keep the threat of stagflation at bay.

The US also has its retail sales report coming up early in the week, and a pickup in headline consumer spending from 0.7% to 1.2% in October is eyed. The core version of the report could show a gain from 0.8% to 1.0% for the same month. The industrial production report is also up for release and a 0.9% rebound is eyed, following the earlier 1.3% slide.

Other possible catalysts for volatility include the speeches of FOMC members Bowman, Waller, Daly, Evans and Bostic around the middle of the week.