FxWirePro: GBP/USD slides to three-month low, scope for further downside

• GBP/USD  hit three month low  on Thursday as dollar was  buoyed by expectations of further Federal Reserve interest rate hikes,.

•Investors increased bets on another Federal Reserve rate hike after fresh data pointed to solid business activity. The probability of at least a 25-basis-point increase next month rose to 71% from roughly 50% the previous day, CME Group’s FedWatch Tool showed.

•New York Fed President John Williams, a voting member of the Federal Open Market Committee, reinforced those expectations, saying it was reasonable to consider another interest rate hike this year.

•Meanwhile, Investors are also focused on the Trump-Xi summit, seen as largely symbolic despite efforts to ​project stability between both ‌sides amid deep rivalry.

•US President Donald Trump was set to welcome Chinese President Xi Jinping to the White House on Thursday for a lavish state summit as both leaders sought to project stability despite deep underlying tensions.

•   Immediate resistance is located at 1.3319(38.2%fib), any close above will push the pair towards 1.3399(Sep 21st high)

•  Strong support is seen at 1.3217(Lower BB) and break below could take the pair towards 1.3150(236%fib).

  Recommendation: Good to sell  around 1.3240, with stop loss of 1.3300 and target price of 1.3160