FxWirePro: GBP/USD slipped lower as US inflation reinforces hawkish Fed outlook

• GBP/USD slipped lower on Wednesday as an upside surprise in US inflation strengthened the dollar and prompted investors to reassess the Federal Reserve’s interest-rate outlook..

.• The US Consumer Price Index rose 0.6% in September, accelerating from August’s 0.4% increase, in line with market expectations.

• US annual CPI inflation accelerated to 3.7% in September from 3.4% in August, slightly exceeding market expectations of 3.6%..

•Core CPI, which excludes volatile food and energy prices, rose 0.3% month-on-month and 2.6% year-on-year, with both readings exceeding analysts’ expectations.

. Money markets showed traders upped their bets on the chances of the Federal Reserve delivering another rate rise this month to around 47%, from closer to 20% prior to the data.

•   Immediate resistance is located at 1.3255(SMA 20), any close above will push the pair towards 1.3279(38.2%fib)

•  Strong support is seen at 1.3149 (23.6%fib) and break below could take the pair towards 1.3111(Lower BB).

  Recommendation: Good to sell around 1.3200, with stop loss of 1.3240 and target price of 1.3160