• GBP/USD slipped lower on Wednesday after fresh U.S. data showed inflation running somewhat hotter, lifting bets on a Fed rate increase.
• The Commerce Department said the PCE Price Index rose 3.7% year-over-year in July, unchanged from June and slightly above the 3.6% economists’ forecast.
• On a month-over-month basis, PCE rose 0.2% versus the estimate calling for a 0.1% increase, after falling 0.1% in June..
• Separately, U.S. economic growth in the second quarter held steady at 1.5% in the revised reading, matching the preliminary figure.
• Looking ahead, Fed Chair Kevin Warsh will deliver his first speech at the annual Jackson Hole symposium, though investors see little chance of fresh policy guidance.\.
• Immediate resistance is located at 1.3656(23.6%fib), any close above will push the pair towards 1.3702(Higher BB)
• Strong support is seen at 1.3553(38.2%fib) and break below could take the pair towards 1.3528(SMA 20).
Recommendation: Good to sell around 1.3600, with stop loss of 1.3680 and target price of 1.3520
