GBP/USD attempts to regain 1.3250, BOE eyed

The GBP/USD pair found fresh bids near 1.3210 and now attempts to regain 1.3250 levels amid renewed optimism as Theresa May moves into Downing Street as the UK’s new PM.

GBP/USD awaits BOE

Currently, GBP/USD now rises 0.68% to 1.3237, bouncing-off a solid support found near 1.3210 region. The bulls fight back control and now provide extra legs to the minor-recovery mode in the cable, after having dipped sharply from 1.3276 – daily highs.

The major rallied this BOE Thursday on the back of renewed optimism as the UK gets a new PM May and a council new ministers, with markets expected a resolution towards Brexit deal will speed up.

However, any upside lacks momentum as investors remain on the edge ahead of the BOE monetary policy decision due later this session. Markets are expecting a 25bps rate cut today, sending the benchmark interest rate to a record low of 0.25%, leaving doors open for further easing measures at its subsequent August meeting.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3276 (daily high), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3187 (daily pivot) below that at 1.3107 (5-DMA).