FxWirePro: GBP/USD hits three-week high, scope for further upside

• GBP/USD climbed to a three-week high on Wednesday as growing expectations of a U.S. Federal Reserve rate cut boosted global demand for risk assets.

• U.S. inflation data on Tuesday showed the CPI rising slightly less than expected in the year to July, suggesting President Donald Trump’s import tariffs have yet to significantly impact consumer prices.

• Investors were on edge over the inflation data, coming after a surprisingly weak August 1 jobs report that risked fueling stagflation fears   a scenario of high inflation coupled with high unemployment.

• Investor attention is now shifting to Friday's high-stakes talks between U.S. President Donald Trump and Russian President Vladimir Putin, aimed at negotiating a peace deal to end the conflict in Ukraine.

•   Immediate resistance is located at 1.657(Higher BB), any close above will push the pair towards 1.3774(23.6%fib)

•  Strong support is seen at 1.3488 (38.2%fib) and break below could take the pair towards 1.3415(SMA 20).

  Recommendation: Good to buy around 1.3560  with stop loss of 1.3490 and target price of 1.3700