FxWirePro: GBP/USD struggle to extend its recovery,good to sell on rally

• GBP/USD eased on Wednesday  as investors assessed a hotter-than-expected inflation report..

• In July, the UK’s consumer price inflation climbed to 3.8%, marking an 18-month high and keeping the country at the top among major wealthy nations for the fastest rising prices.

• The data prompted markets to revise their expectations for the Bank of England’s monetary policy, with traders now predicting a 0.25% rate cut in March next year, instead of the earlier expectation of a reduction before the end of 2025.

•The BoE reduced interest rates this month following a close 5-4 vote, signaling it would slow the gradual easing of borrowing costs because inflation remains persistent.

• At GMT 11:57,the pound  was down 0.10% at 1.3474 against greenback.

•   Immediate resistance is located at 1.3542(38.2%fib), any close above will push the pair towards 1.3596(Aug 14th high)

•  Strong support is seen at 1.3442 (61.8%fib) and break below could take the pair towards 1.3415(SMA 20).

  Recommendation: Good to sell around 1.3480  with stop loss of 1.3560 and target price of 1.3410