FxWirePro: GBP/USD gives up gains as traders await UK GDP

• GBP/USD initially gained on Tuesday but later gave up its advances as investors digested U.S. economic data and positioned cautiously ahead of Thursday’s UK GDP release.

• U.S. consumer prices barely rose in July as gasoline prices fell for a second consecutive month, while underlying inflation remained subdued, further weakening expectations of a Federal Reserve rate hike in September..

•Investors are awaiting the UK's GDP data on Thursday, with the monthly figures expected to provide fresh clues on the health of the economy and the outlook for Bank of England policy..

•Economists expect growth of 0.4% QoQ in the three months to June, down from 0.6% in the first quarter, with the annual rate seen ticking up to 1.1% from 0.9% in March.

•   Immediate resistance is located at 1.3546(50%fib), any close above will push the pair towards 1.3570(Higher BB)

•  Strong support is seen at 1.3421(SMA20) and break below could take the pair towards 1.3386(38.2%fib).

  Recommendation: Good to buy  around 1.3500, with stop loss of 1.3590 and target price of 1.3430