FxWirePro: GBP/USD advances ahead of BoE rate decision

• GBP/USD strengthened on Wednesday   as    sterling gained some traction ahead of Bank of England rate cut on Thursday.

• Bank of England is widely expected to cut its key interest rate to 4% from 4.25% and to lower it again before the year's end, despite inflation nearing double the central bank's 2% target in June.

• Britain’s construction sector contracted at its fastest pace in over five years last month, according to a new survey, raising concerns over the government’s ability to meet its goal of building 1.5 million homes by mid-2029.

• S&P Global’s construction PMI dropped to 44.3 in July from 48.8 in June, marking the sharpest decline since May 2020 and coming in below all forecasts, highlighting deepening weakness in the sector.

• Traders are increasingly confident that the Bank of England will cut interest rates on Thursday  , with market pricing now reflecting a 78.6% probability of a rate cut.

•   Immediate resistance is located at 1.3415(38.2%fib), any close above will push the pair towards 1.3581(Jul 24th high)

•  Strong support is seen at 1.3177(38.2%fib) and break below could take the pair towards 1.3130(Lower BB).

  Recommendation: Good to buy around 1.3310  with stop loss of 1.3250 and target price of 1.3380