GBP/USD firmer near 1.3250 ahead of BoE

The rally in Sterling is well and sound on Thursday, sending GBP/USD to the mid-1.3200s ahead of the BoE MPC meeting.

GBP/USD focus on BoE, minutes

The par is recovering part of Wednesday’s losses and remains well bid in the 1.3250 area today, all propped up by a generalized preference for riskier assets.

GBP will remain under pressure nonetheless, as the BoE could loosen its monetary conditions via a 25 bp rate cut, extra QE or a combination of both at today’s meeting.

In the meantime, spot keeps the positive note after being rejected in the 1.3320/40 area, recent tops and the 23.6% Fibonacci retracement of the 1.5020-1.2796 move.

GBP/USD levels to consider

As of writing the pair is gaining 0.74% at 1.3243 facing the next resistance at 1.3337 (session high Jul.13) followed by 1.3535 (high Jun.29) and finally 1.3646 (38.2% Fibo of 1.5020-1.2796). On the flip side, the immediate support appears at 1.2851 (low Jul.11) ahead of 1.2797 (20916 low Jul.6).