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FxWirePro: GBP/USD neutral in the near-term, scope for downward resumption

• GBP/USD initially gained  on Wednesday but gave up ground as investors digested UK and US CPI data.

•  The annual rate of UK inflation edged down to 2.5% in December from 2.6% in November, the Office for National Statistics said, in contrast to anayst' expectations   to remain unchanged.

•The US consumer price index rose 0.4% last month, the largest gain since March, after climbing 0.3% in November, the Labor Department's Bureau of Labor Statistics said

• Technical signals are  strongly bearish as RSI is   at 30, daily momentum studies  5, 9 and 10 DMAs are trending down.

•   Immediate resistance is located at 1.2305( 38.2%fib), any close above will push the pair towards 1.2410 (50%fib)

•  Strong support is seen at 1.2163(23.6%  fib) and break below could take the pair towards 1.2092 (Lower BB).

  Recommendation: Good to sell around 1.2240 with stop loss of 1.2330 and target price of 1.2160

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