FxWirePro: GBP/USD uptrend loses steam, remains on bullish path

• GBP/USD edged lower  on Tuesday as investors digested U.S. CPI data and awaited fresh catalyst.

• The Consumer Price Index rose 0.3% last month for an annual gain of 2.7%, while core CPI rose by 0.2% in December for a 2.6% year-on-year increase.

• Thursday’s UK GDP release is on the calendar, though attention is firmly on next week’s employment and inflation data that may steer BoE expectations.

• Market pricing points to one, and potentially two, rate cuts in the first half of the year, though a faster-than-expected cooling in inflation could open the door to additional monetary easing.

• Until key data is released, the pound’s movements against major peers are being driven largely by external developments, particularly in the United States.

•   Immediate resistance is located at 1.3453( SMA20), any close above will push the pair towards 1.3481(50%fib)

•  Strong support is seen at 1.3369(50%  fib) and break below could take the pair towards 1.3348(Lower BB).

  Recommendation: Good to buy around 1.3430 with stop loss of 1.3350 and target price of 1.3500