• GBP/USD advanced on Tuesday as market digested British labour market data and US CPI figures.
• Company payrolls dropped by a provisional 8,000 in July from June, marking the smallest decline since the downward trend began in February. The reduction in June was revised down to 26,000, fewer than the originally reported fall of 41,000.
•Basic wage growth in the private sector - watched closely by the BoE - edged down to 4.8% in the three months to June.
• U.S. consumer prices rose moderately in July, driven by higher costs in services like airline fares and tariff-affected goods such as furniture, marking the biggest underlying inflation increase in six months.
• The CPI increased by 0.2% in July, down from 0.3% in June, mainly due to a 2.2% drop in gasoline prices. Food prices remained steady after rising 0.3% for two months.
• Immediate resistance is located at 1.3353(38.2%fib), any close above will push the pair towards 1.3596(Higher BB)
• Strong support is seen at 1.3393 (50 SMA) and break below could take the pair towards 1.3341(Aug 7th low).
Recommendation: Good to buy around 1.3470 with stop loss of 1.3400 and target price of 1.3560
