• GBP/USD slipped lower on Tuesday as the U.S. dollar strengthened on rising oil prices and higher Treasury yields.
•The renewed surge in crude prices has heightened concerns over inflation, supporting expectations that the Federal Reserve could maintain a hawkish stance and putting further upward pressure on U.S. yields.
• Sterling also remained under pressure after UK labour-market data showed signs of continued weakness ahead of the Bank of England’s policy decision.
• Britain's jobs market stayed weak in the third quarter, while a separate report showed grocery price inflation increased to 2.3% over the four weeks to September 6.
• Investors are now awaiting UK CPI data due on Wednesday, which could provide fresh clues on the BoE’s interest-rate outlook.
• Immediate resistance is located at 1.3535(38.2%fib), any close above will push the pair towards 1.3560(SMA 20)
• Strong support is seen at 1.3456(Lower BB) and break below could take the pair towards 1.3415(38.2%fib)
Recommendation: Good to sell around 1.3480with stop loss of 1.3560 and target price of 1.3400
