• GBP/USD slipped lower on Wednesday as the dollar strengthened following data indicating that underlying inflation in the world's largest economy rose in August.
• The consumer price index (CPI) increased by 0.2% in August, following a 0.2% rise in July. When excluding the more volatile food and energy components, the CPI climbed 0.3% in August, up from a 0.2% increase in July.
• According to the CME's FedWatch Tool, the probability that the FOMC cuts rates 25 basis points at its September 17-18 policy meeting now stands at 85% from 71% just before the data came out.
• At GMT 13:37 the pair was trading down 0.21% at 1.3052, lowest since Aug 21st .
• Immediate resistance is located at 1.3154( 38.2%fib), any close above will push the pair towards 1.3231(Sep 6h high)
• Strong support is seen at 1.3022(50%fib) and break below could take the pair towards 1.3000(Psychological level).
Recommendation: Good to sell around 1.3100 , with stop loss of 1.3140 and target price of 1.2920
