• 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
