GBP/USD eases from session high, still firm around 1.3150
Easing political uncertainty in the UK assisted the GBP/USD major to build on to its Monday's recovery and surge past 1.3100 handle to a 5-day high level of 1.3187. The pair, however, has retraced from highs and is currently trading around 1.3150 region.
The pair gained traction after the BOE's Financial Stability Report discussed about lowering banks' capital buffer to ensure credit supply after the historic Brexit vote but failed to mention anything over the monetary policy action.
However, markets attention will remain focused Thursday's BOE monetary policy decision, its first policy meeting since the Brexit vote. Market participant expect at-least 25 basis points of rate-cut in July and are also pricing-in possibilities of some additional quantitative easing measures during August meeting.
Nevertheless, the pair remained well bid and continues trading comfortably above 1.3100 handle.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, notes, "The technical picture presents a bullish stance intraday, as in the 4 hours chart, the price has extended well above its 20 SMA, whilst the technical indicators head higher within positive territory, with scope to keep on advancing. The immediate resistance is the mentioned daily high, with further gains exposing 1.3250 as a possible bullish target for the day."
"A strong support now stands at 1.3105, with a downward extension below it seeing the pair returning first to 1.3050 and then to the 1.3000 figure."
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
