• GBP/AUD dipped on Wednesday as investors assessed U.S. inflation data and Middle East tensions .
• The Personal Consumption Expenditures Price Index, which the Fed uses to set its inflation target, increased 3.7% in the 12 months through July, the Commerce Department's Bureau of Economic Analysis said on Wednesday. Economists polled by Reuters had forecast a reading of 3.6%.
•Traders now see a 40% chance of a rate hike next month, compared with 36% before the data, and are pricing in a 60% chance that the Fed will leave rates unchanged, according to the CME FedWatch Tool.
• On the geopolitical front, Iran and Oman are still working on the details of an agreement on the Strait of Hormuz, a senior Iranian source said on Wednesday, after Iran's Revolutionary Guards said the two countries had agreed how to share the waterway and its revenue.
• Immediate resistance is located at 1.9083 (50%fib), any close above will push the pair towards 1.9180 (Aug 21st high).
• Immediate support is seen at 1.8909(38.2%fib) and break below could take the pair towards 1.8681(23.6%fib).
Recommendation: Good to sell around 1.8950, with stop loss of 1.9050 and target price of 1.8900
