• GBP/USD consolidated around 1.3540 after data showed U.S. producer prices unexpectedly fell in August, bolstering expectations of a Fed rate cut later this month.
• U.S. producer prices unexpectedly fell in August, pulled down by a decline in the costs of services.
• The U.S. PPI for final demand fell 0.1% in August after July’s revised 0.7% gain, defying expectations for a 0.3% increase, the Labor Department reported Wednesday.
• Services prices slipped 0.2% in August after a 0.7% rebound in July, while goods prices inched up 0.1% following a 0.6% rise. On a yearly basis, PPI rose 2.6%, down from 3.1% in July.
. • At GMT 13:30, the pound was up 0.12% to 1.3554 against the dollar.
• Immediate resistance is located at 1.3618(38.2%fib), any close above will push the pair towards 1.3608(Higher BB)
• Strong support is seen at 1.3491(SMA 20) and break below could take the pair towards 1.3402(50%fib).
Recommendation: Good to buy around 1.3530 with stop loss of 1.3450 and target price of 1.3590
