• GBP/USD strengthened on Wednesday as the dollar came under selling pressure after disappointing U.S. inflation and retail sales data reduced expectations that the Federal Reserve would raise interest rates in the second half of the year.
   
• The Fed is expected to raise interest rates for the second time this year later on Wednesday, but the signs of moderate consumer spending and retreating inflation pressures could worry policymakers who have previously viewed the softness as transitory.
   
• The central bank is scheduled to release its decision at 2 p.m EDT (1800 GMT) at the conclusion of its two-day policy meeting. Fed Chair Janet Yellen is due to hold a news conference at 2:30 pm EDT (1830 GMT).
   
• However, further upside for this pair is expected to be limited as strong resistance level at 1.2975 is set to limit upside and bring decline towards lower levels.
   
• To the upside, the immediate resistance can be seen at 1.2830 a break above this level would expose the cable to next resistance level at 1.2900.
   
• To the downside, immediate support can be seen at 1.2681, a break below at this level will open the door towards next level at 1.2635.
  
  Resistance Levels
  
  R1:  1.2830 (50% Retracement level)       
  
  R2: 1.2900 (Psychological levels)               
  
  R3: 1.2975 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.2681 (38.2% Retracement level)                    
  
  S2: 1.2635 (June 13th lows)|
  
  S3: 1.2500 (23.6% Retracement level)