FxWirePro: GBP/USD declines sharply after weaker than expected UK CPI data, good to sell on rallies

• GBPUSD has shown a minor decline after release of UK CPI data. The pair declined almost 35 pips till 1.33468 after the data and is currently trading around 1.33544.
   
• UK CPI data for the month of Apr came at 0.4% m/m compared to forecast of 0.5%.The core CPI came at 2.4% yoy slightly below estimate of 2.5%. Both core and headline CPI came slightly below expected. The decline in CPI is slightly negative for GBP as the BOE will defer the rate hike due to weak inflation.
   
• The pair hits intraday high of 1.3445 and near term resistance is around 1.345 any break above will take the pair to next level till 1.3496 (10- day MA)/ 1.3585 (20- day MA)/1.3620. Short term trend is still weak as long as resistance 1.3620 holds. Any break above 1.3620 will take the pair till 1.3680/1.3760.
   
• The major support is around 1.3350 and any break below will drag the pair down till 1.3300/1.3230.

It is good to sell on rallies around 1.3365-70 with SL around 1.3405 for the TP of 1.3300/1.3230.