FxWirePro: GBP/USD edges higher as markets price tighter BoE policy

• GBP/USD edged higher on Monday as investors priced in a more hawkish stance from the Bank of England amid renewed inflation pressures.

• BoE Governor Andrew Bailey said on Friday that persistently high energy prices would make it more difficult for the central bank to keep interest rates unchanged..

• The Bank of England has so far refrained from tightening monetary policy, while other major central banks, including the Federal Reserve and European Central Bank, have raised interest rates in response to energy-driven inflation pressures..

• BoE Deputy Governor Dave Ramsden said on Monday that continued increases in upside inflation pressures could strengthen the case for raising interest rates..

•Money market futures are pricing in an 85% chance of a quarter percentage point interest rate • hike at the November meeting to 4%, with four hikes priced in by the middle of next year.

•   Immediate resistance is located at 1.3306 (38.2%fib), any close above will push the pair towards 1.3349(Sep  23rd high)

•  Strong support is seen at 1.3227(Daily low) and break below could take the pair towards 1.3179(23.6%fib).

  Recommendation: Good to sell  around 1.3300 with stop loss of 1.3380  and target price of 1.3230