• 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
