FxWirePro: GBP/USD drops on cooler than expected UK CPI data,eyes 1.2900 level

• GBP/USD   slipped lower on Wednesday  as sterling attracted sellers following softer-than-expected British inflation data that gave the Bank of England room to lower rates more aggressively.

•  Annual consumer price inflation eased to 1.7% in September from 2.2% in August, the lowest reading since April 2021 and driven down by lower airfares and petrol prices, the Office for National Statistics said..

• The reading was the lowest result since April 2021, and it fell short of the 1.9% anticipated by economists. It bolstered expectations on a BoE interest rate cut  next month and increased the likelihood of another cut in December.

• At GMT 14:48, the pair was trading down 0.50% at 1.3006, lowest reading since April 2021

•   Immediate resistance is located at 1.3060( 38.2%fib), any close above will push the pair towards 1.3100(Oct 15th high)

•  Strong support is seen at 1.2976(23.6%fib) and break below could take the pair towards 1.2935(Lower BB).

  Recommendation: Good to sell  around 1.3030, with stop loss of 1.3100 and target price of 1.2900