FxWirePro: GBP/USD dips as firmer PCE data supports the dollar

• 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