FxWirePro: GBP/USD steadies after UK inflation data, Fed in focus

• GBP/USD steadied on Wednesday as market digested UK inflation data  and  awaited the latest monetary policy decision by the U.S. Federal Reserve.

• UK inflation remained steady at 3.8% in August, the highest among major advanced economies, according to official data on Wednesday, strengthening expectations that the Bank of England will delay interest rate cuts until next year..

•The increase in food prices  which the BoE views as crucial in shaping public inflation expectations  was the steepest since January last year, offsetting a decline in airline fares, the Office for National Statistics reported..

• Attention meanwhile shifted to the U.S. Federal Reserve, which is expected to cut its benchmark interest rate by 25 basis points to a range of 4.00%–4.25% later on Wednesday..

. • At GMT 10:50, the pound was up  0.01% to 1.3649 against the dollar.

•   Immediate resistance is located at 1.3665(38.2%fib), any close above will push the pair towards 1.3741(June 30th high)

•  Strong support is seen at 1.3568(50%fib) and break below could take the pair towards 1.3518(SMA 20).

  Recommendation: Good to buy around 1.3630 with stop loss of 1.3560 and target price of 1.3700