FxWirePro: GBP/USD retreats as traders await US and UK inflation data

• GBP/USD initially firmed but gave up ground  traders squared positions ahead of upcoming US and UK CPI releases and the UK Autumn Budget on October 28.

.• Investors are awaiting Thursday’s release of UK GDP figures for August for fresh insights into the economy’s performance.

.• Wednesday’s US inflation figures are likely to play a key role in shaping the dollar’s performance before this month’s Fed meeting.

• The UK economy is expected to have contracted by 0.1% in August, following 0.4% growth in July. Investors will also assess manufacturing and industrial production data for further insight into economic activity.

. The UK Autumn Budget will be crucial for gilts and sterling, as any policy missteps by the Burnham government could push UK bond yields higher and place further pressure on the pound.

•   Immediate resistance is located at 1.3262(Higher BB), any close above will push the pair towards 1.3266(38.2%fib)

•  Strong support is seen at 1.3231 (38.2%fib) and break below could take the pair towards 1.3200(Lower BB).

  Recommendation: Good to sell around 1.3240, with stop loss of 1.3320 and target price of 1.3180