FxWirePro: GBP/USD edges lower as US PPI stalls and UK inflation surprises

• GBP/USD edged lower on Wednesday  as dollar firmed after  data showed U.S. producer prices were   unchanged in June  .

• The producer price index (PPI) for final demand was unchanged in June, following a revised 0.3% increase in May, the U.S. Bureau of Labor Statistics reported Wednesday.

• Meanwhile, UK consumer price inflation rose to 3.6% in June, the highest in more than a year, surprising markets, according to official figures released Wednesday.

• British inflation has been climbing steadily since hitting a three-year low of 1.7% last September, with the BoE projecting a peak of 3.7% by this September nearly double its 2% target.

•Investors  dialed back the probability of a BoE rate cut in August and a follow-up cut later in the year.

•   Immediate resistance is located at 1.3447(SMA 5), any close above will push the pair towards 1.3522 (38.2%fib)

•  Strong support is seen at 1.3299(50%fib) and break below could take the pair towards 1.3245(April23rd low).

  Recommendation: Good to sell around 1.3380 with stop loss of 1.3460 and target price of 1.3320