FxWirePro: GBP/USD drifts lower as markets brace for UK CPI data

• GBP/USD edged lower on Monday as investors turned cautious ahead of U.K. inflation data later in the week and as fiscal concerns build in the lead-up to November's U.K. autumn budget.

• Inflation data on Wednesday will be monitored for clues on the path of interest-rate cuts by the Bank of England.

•A weaker-than-expected CPI reading could reinforce expectations for earlier policy easing, while a surprise uptick in inflation may prompt markets to scale back bets on near-term cuts.

• The data will be crucial in shaping sentiment ahead of the BoE’s next meeting, as policymakers balance the risk of slowing growth against still-elevated price pressures.

•At 10.39 GMT the pound was last trading down 0.05%  at 1.3146 against the dollar.

•   Immediate resistance is located at 1.3480(50%fib), any close above will push the pair towards 1.3530(Higher BB)

•  Strong support is seen at 1.3391(38.2%fib) and break below could take the pair towards 1.3297(Lower BB).

Recommendation: Good to sell around 1.3430 with stop loss of 1.3480 and target price of 1.3360