• GBP/USD traded in tight range on Tuesady as market focus now turns to this week’s UK inflation report.
• A cooler-than-forecast CPI reading would give ammunition to BoE doves seeking rate cuts in December and early 2025.
• The headline inflation expected to ease to 3.6% YoY from 3.8% and core inflation seen edging down to 3.4% from 3.5%.
•Markets may interpret the data as clearing the way for a BoE policy easing in December or January, given last week’s disappointing GDP and jobs reports.
• Immediate resistance is located at 1.3186(SMA 20), any close above will push the pair towards 1.3275(38.2%fib)
• Strong support is seen at 1.3101(38.2%fib) and break below could take the pair towards 1.3011(Lower BB).
Recommendation: Good to sell around 1.3170 , with stop loss of 1.3250 and target price of 1.3100
