• GBP/USD drifts lower on Wednesday as investors digested the latest UK Consumer Price Index (CPI).
• British consumer price inflation held at 3.0% in February, unchanged from January's rate, official figures showed on Wednesday, ahead of a likely upward lurch as war in the Middle East pushes up prices.
• Lower petrol prices in February offset rising clothing costs, the ONS said, but the relief may be short-lived as oil prices are now about 50% higher than a month ago.
• After the data, Reeves said upcoming government measures would lower some household energy costs and vowed to act against unfair price rises.
• Immediate resistance is located at 1.3437(50%fib), any close above will push the pair towards 1.3550(Higher BB).
• Strong support is seen at 1.3261(38.2%fib), and break below could take the pair towards 1.3233(Lower BB).
Recommendation: Good to sell on around 1.3380 with stop loss of 1.3480 and target price of 1.3300
