FxWirePro: GBP/USD bulls loosen their grip a bit after UK inflation data, dips to be bought

• GBP/USD retreated on Wednesday as stronger-than-expected UK inflation data prompted investors to scale back expectations for imminent Bank of England rate cuts.

• Data showed, Britain saw a sharper-than-expected rise in inflation in April, with key components closely monitored by the Bank of England showing notable increases..

• Services price inflation—a key measure of domestic inflation pressures—jumped to 5.4% year-on-year in April, surpassing forecasts of 4.8% and well above the Bank of England’s projection of 5.0%.

• Separately, British house prices also rose at their fastest pace since the end of 2022 in the 12 months to March, according to official data published on Wednesday.

•   Immediate resistance is located at 1.3469( 23.6%fib), any close above will push the pair towards 1.3512( Higher BB)

•  Strong support is seen at 1.3340 (May 20th low) and break below could take the pair towards 1.3276(38.2%fib).

  Recommendation: Good to buy  around 1.3380, with stop loss of 1.3300 and target price of 1.3450.