• GBP/USD steadied on Monday as investors looked ahead to the prospect of interest rate cuts by the Bank of England later this week.
• All eyes are on the Bank of England ahead of Thursday’s policy announcement, as markets strongly anticipate a 25bps rate cut with a 90% probability...
• Traders also anticipate a total of 50 basis points of easing by year-end, reflecting expectations of a gradual shift toward a more accommodative stance amid slowing economic momentum.
• Beyond the expected rate cut, markets are keenly awaiting any BoE commentary on interest rate direction and possible tweaks to the speed of balance sheet reduction.
• At 17:57 GMT, the sterling was trading at 1.3296 up 0.11% against the dollar
• Immediate resistance is located at 1.3355(50%fib), any close above will push the pair towards 1.3432(SMA 20)
• Strong support is seen at 1.3172(61.8%fib) and break below could take the pair towards 1.3138(Lower BB).
Recommendation: Good to buy around 1.3270 with stop loss of 1.3180and target price of 1.3350
