• GBP/USD strengthened on Tuesday after softer-than-expected U.S. consumer inflation data weighed on the dollar.
• Economists expect the U.S. Consumer Price Index to rise 3.8% year-on-year in June, remaining elevated, according to a Reuters survey ahead of Tuesday's Labor Department report.
• The release of weaker U.S. CPI figures shifted market sentiment, reducing expectations that the Fed could raise interest rates as soon as its July 29 meeting.
• Financial markets are pricing an 83.4% chance the Fed will keep interest rates unchanged in July, up from 58.3% on Monday, while still expecting at least one 25-basis-point rate hike before year-end.
• Immediate resistance is located at 1.3391(50%fib), any close above will push the pair towards 1.3442(Daily high)
• Strong support is seen at 1.3343(Daily low) and break below could take the pair towards 1.3293(38.2%fib).
Recommendation: Good to sell around 1.3400, with stop loss of 1.3470 and target price of 1.3330
