FxWirePro: Cable deflates from session highs at 1.5388, awaits UK CPI data

Sterling spikes across the board on Merger and Acquisition (M&A) news, pushing GBP/USD to session highs.

• Sterling rises to near three-week high of 1.5388, on m&a news, SABMiller accepts GBP 68bn AB InBev takeover offer 
   
• Upside in the pair is now is being capped around 0.5387, resistance at 1.5383 daily kijun remains firm
   
• Markets await UK's inflation data due ahead and German ZEW Survey for further direction
   
• Cable is currently trading at 1.5362, with immediate resistance 1.5382, and support on the downside at 1.5318 (200 DMA)
   
• If the headline and core number tick higher, the pair could easily take out the immediate resistance at 1.5411 (50-DMA) and rise to 1.5483 (100-DMA)

Resistance Levels:

R1: 1.5382 (Daily High Oct 9)
R2: 1.5383 (Kijun-Sen)
R3: 1.5409 (38.2% Fib of 1.4567-1.593)

Support Levels:

S1: 1.5315 (Daily Low Oct 12)
S2: 1.5318 (200 DMA)
S3: 1.5301 (Daily Low Oct 9)