• GBP/USD edged lower on Wednesday after data showed British consumer price inflation fell to in October.
• Consumer price inflation fell to 3.6% in October from September's joint 18-month high of 3.8%, as expected by the BoE and economists..
• The data solidified expectations of a BoE rate cut in December, while broader markets remained directionless as U.S. agencies worked through a post-shutdown data backlog.
• Markets now assign an 86% probability to a 25-bps BoE rate cut in December, up from 80% on Tuesday.
· After halting its quarterly rate cuts this month, the BoE now awaits the Nov. 26 budget, where Rachel Reeves plans to avoid policies that could fuel inflation.
• Immediate resistance is located at 1.3144(38.2%fib), any close above will push the pair towards 1.3179(SMA 20)
• Strong support is seen at 1.3010 (23.6%fib) and break below could take the pair towards 1.29711(Lower BB).
Recommendation: Good to sell around 1.3170 , with stop loss of 1.3250 and target price of 1.3100
