FxWirePro: GBP/USD gains above 1.3500 ahead of key U.S. and UK data

• GBP/USD advanced  above 1.3500  on Monday as markets prepared for US inflation data and UK GDP figures later this week.

• Economists expect the U.S. July consumer price index ‌to have risen ⁠3.4% year on year in data on Wednesday, compared to 3.5% the previous month.

• Core CPI, which excludes volatile food and energy prices, is expected to ease to 2.5% year-on-year from 2.6% in June.

•Producer price data   on Thursday and retail sales figures   on Friday will further inform the outlook for inflation.

• Attention in the UK is shifting to Thursday’s preliminary Q2 GDP reading amid uncertainty over the economic outlook..

• The UK economy is expected to have grown 1.1% on an annualised basis in Q2, supported partly by lower energy prices. Retail sales also surprised on the upside in June, boosted by warm weather and World Cup-related spending.

•   Immediate resistance is located at 1.3543(50%fib), any close above will push the pair towards 1.3606(Higher BB)

•  Strong support is seen at 1.3426(SMA 20) and break below could take the pair towards 1.3395(38.2%fib).

  Recommendation: Good to sell  around 1.3550, with stop loss of 1.3620 and target price of 1.3450