FxWirePro: GBP/USD recovers slightly on higher U.K CPI, good to sell on rallies

• Cable shown a minor recovery on account of better than expected UK CPI data. The pair formed a bottom around 1.2635 and jumped till 1.27713. It is currently trading around 1.27290.
   
• UK headline CPI number came in at 2.9% up from 2.7% in April and core CPI was at 2.6 % compared to forecast of 2.3%.
   
• On the lower side the pair near term support is around 1.2614 and any break below will drag the pair till , a decline till 1.2585/ (200- day MA)/1.2470 (61.8% retracement of 1.21088 and 1.30470) likely.
   
• The near term minor resistance is around 1.2780 (support turned into resistance) and any break above will take the pair till 1.2840 (50% retracement of 1.30476 and 1.26359)/1.2880 (21 EMA). The pair should break above 1.3050 for further bullish continuation.

It is good to sell on rallies around 1.2735-40, with SL around 1.2805 for the TP of 1.2635/1.2600.