FxWirePro: GBP/USD runs out of steam but maintains bullish outlook

• GBP/USD edged lower on Friday as concerns over Britain’s fiscal position weighed on sentiment.

•In the UK, fiscal debate remains in focus after the IPPR think tank suggested the government consider taxing banks on reserves held at the Bank of England, a proposal that could have implications for monetary policy transmission

• A pullback in expectations for rate cuts by the Bank of England and buoyant economic data have supported sterling this month.

• investors awaited the U.S. PCE price index report, the Fed's preferred inflation measure, later on Friday for cues on the future path of monetary policy.

• Markets are pricing in over an 87% probability of a 25-basis-point rate cut at next month’s Fed policy meeting, according to the CME FedWatch Tool

•   Immediate resistance is located at 1.3598(38.2%fib), any close above will push the pair towards 1.3700(Higher BB)

•  Strong support is seen at 1.3317(50%fib) and break below could take the pair towards 1.3233(Lower BB).

  Recommendation: Good to buy around 1.3500  with stop loss of 1.3420 and target price of 1.3560