The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.2750 following some key economic releases. The technical bias remains bearish because of the lower high in the recent upside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded around 1.2762. A support can be noted near 1.3000, a psychological level ahead of 1.2955, the horizontal support level and then 1.2853, another major horizontal support as demonstrated in the given below chart.
On the upside, a resistance can be noted around 1.3643, an immediate trendline resistance level ahead of 1.4000, a major psychological number and then 1.4342, the confluence of a horizontal and trendline resistance as demonstrated in the given below chart. The technical bias shall remain bearish unless the 1.4000 resistance level is broker.
BoE Interest Rate
The Bank of England has raised the interest rate for only the second time in a decade. The rate has risen by a quarter of a percentage point, from 0.5% to 0.75% – the highest level since March 2009.
The move will increase the interest costs of more than three-and-a-half million residential mortgages that have variable or tracker rates. But it will be welcomed by savers, who could see a lift in their interest rates over the coming months.
However, after the last rate rise in November, half of savings accounts did not move at all.
Considering the overall price behavior of the pair over last couple of days, buying the GBPUSD around current levels can be a good decision in short to medium term.