FxWirePro: GBP/USD gains some ground but bulls lack punch

• GBP/USD gained ground on Wednesday as the U.S. dollar softened, while traders grappled with surging oil prices above $100 a barrel amid intensifying Middle East tensions.

• Concerns over global oil supplies following renewed Middle East tensions pushed Brent crude above the key $100-a-barrel level on Wednesday.

• Attention is turning to Thursday’s U.S. producer price index and Friday’s consumer inflation report, which could provide fresh signals on the likelihood of a Fed rate hike to combat persistent price pressures.

•The market is pricing about a 60% chance of an interest rate hike at the central bank's policy meeting next week, according to the CME FedWatch Tool..

•Meanwhile, markets see little chance of a Bank of England rate hike next week, although at least two increases are priced in by March, with a third carrying a 40% probability.

•   Immediate resistance is located at 1.3568(SMA 20), any close above will push the pair towards 1.3670(23.6%fib)

•  Strong support is seen at 1.3530(38.2%fib) and break below could take the pair towards 1.34440(Lower BB).

  Recommendation: Good to sell  around 1.3560, with stop loss of 1.3650 and target price of 1.3500