FxWirePro: GBP/USD gaining momentum for a move towards 1.3550 level

• GBP/USD  advanced on Monday as investor attention remains on Bank of England policy and the deteriorating fiscal picture.

• Britain's economic indicators painted a mixed picture last week, with the labour market continuing to cool while consumer price inflation unexpectedly climbed to its highest level in over a year.

• The data did little to shift market expectations, with a 25 basis point rate cut by the Bank of England on August 7 still nearly fully priced in, and around 50 basis points of total easing anticipated by year-end.

• Meanwile,Retail sales data due Friday may offer clearer insight into consumer spending, while a preliminary survey on business activity from purchasing managers is scheduled for release on Thursday.

•   Immediate resistance is located at 1.3528(38.2%fib), any close above will push the pair towards 1.3573(SMA 20)

•  Strong support is seen at 1.3340(50%fib) and break below could take the pair towards 1.3280(Lower BB).

  Recommendation: Good to buy around 1.3460 with stop loss of 1.3380 and target price of 1.3550