• British pound declined sharply against US dollar on Tuesday as higher than expected British inflation figures for June did little to alter expectations that the Bank of England would ease monetary policy as early as next month.
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• Currently, the pair trading at 1.3085 short pullback towards 1.3160 levels should be viewed as selling opportunities as the resistance level at 1.3214 is set to hold the bulls from advancing further above and push the pair towards lower levels in the short term.
   
• To the upside, immediate resistance can be seen at 1.3134 a break above this level would expose the cable to next resistance level at 1.3214.
   
• To the downside, immediate support can be seen at 1.3054, a break below at this level will open the door towards next level at 1.2954.
  
  Resistance Levels
  
  R1:  1.3134 (50% Retracement level)       
  
  R2: 1.3214 (61.8% Retracement level)    
  
  R3: 1.3314 (July 18th high)
  
  Support Levels
  
  S1: 1.3054 (38.2% Retracement level)                    
  
  S2: 1.2954 (23.6% Retracement level)
  
  S3: 1.2900 (Psychological levels)