FxWirePro:GBP/ USD bulls take over the reins after U.S. inflation report

• GBP/USD rose on Wednesday   as the greenback eased after the release of a key U.S. inflation report.

•A report from the Commerce Department showed that the Personal Consumption Expenditure (PCE) index, the Federal Reserve's preferred measure of inflation, increased by 2.3% year-over-year in October, matching economists' expectations. However, it continued to exceed the central bank's 2% target.

•Other data showed the US economy grew at a solid clip in the third quarter, while weekly jobless claims fell again last week, keeping the door open to another interest-rate cut from the Federal Reserve in December.

• Sterling initially dipped following the data releases but managed to recover later. The UK has a light economic data schedule ahead, with fewer significant releases expected..

•   Immediate resistance is located at 1.2713( Nov 20th high), any close above will push the pair towards 1.2755(50%fib)

•  Strong support is seen at 1.2644(38.2%fib) and break below could take the pair towards 1.2511(23.6%fib).

  Recommendation: Good to sell around 1.2750 , with stop loss of 1.2680  and target price of 1.2830