• GBP/USD slipped lower on Wednesday as dollar rose after Federal Reserve Chair Jerome Powell stopped short of confirming investors' expectations of a looming slide in U.S. interest rates.
• Powell on Tuesday reiterated last week’s message after the Fed’s 25 bps rate cut, stressing the need to balance inflation risks with a weakening job market.
• Fed funds futures price a 91.9% chance of an October rate cut, up from 89.8% Tuesday, CME FedWatch data shows.
• Investors are now looking ahead to the U.S. Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday for further cues on potential rate cuts.
. • At GMT 12:20, the pound was down 0.70% to 1.3430 against the dollar.
• Immediate resistance is located at 1.3520(SMA 20), any close above will push the pair towards 1.3582(50%fib)
• Strong support is seen at 1.3419(50%fib) and break below could take the pair towards 1.3359(Lower BB).
Recommendation: Good to buy around 1.3450 with stop loss of 1.3500 and target price of 1.3380
