The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.4100 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.
GBP/USD Technical Analysis
As of this writing, the pair is being traded near 1.4146. A hurdle may be noted around 1.4262 (a major horizontal resistance zone) ahead of 1.4300 (a psychological level) and then 1.4343 (another major resistance area).
On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.
BoE Interest Rate
The Bank of England said on Thursday it was likely to raise interest rates sooner and by more than it thought only three months ago, because Britain’s slow-moving economy is getting a boost from the global recovery.
The BoE’s rate-setters gave themselves time to assess how Britain is coping with the approach of Brexit by voting unanimously to hold Bank Rate at 0.5 percent, as expected.
But Governor Mark Carney and his colleagues said they saw a growing need to keep a grip on inflation, echoing other central banks which are moving toward tighter monetary policy a decade after the financial crisis.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.