• GBP/USD initially dipped on Thursday but recovered some ground as investors booked profits on shorts.
• Data on Wednesday that showed British inflation dropped to the lowest since April 2021 prompted traders to price in a stronger chance of a UK rate cut in November..
• At GMT 20:48, the pair was trading up0. 16% at 1.3010, recovering from April 2021 low.
• Technical highlight downside risks for GBP/USD , with momentum studies, 5, 10 and 11 DMAs tracking south.
• Immediate resistance is located at 1.3017( 38.2%fib), any close above will push the pair towards 1.3054(23.6%fib)
• Strong support is seen at 1.2977(23.6%fib) and break below could take the pair towards 1.2943(Lower BB).
Recommendation: Good to sell around 1.3030, with stop loss of 1.3100 and target price of 1.2920
