• GBP/USD rose on Monday as improved risk sentiment and optimism over a potential resolution to the Ukraine conflict boosted demand for the sterling.
• Sterling also strengthened driven by the prospect of UK rates will take longer to fall than those elsewhere.
• The BOE cut interest rates by 25 basis points to 4.5% in February. However, recent data has signaled a more cautious approach to further rate cuts.
• At GMT 12:03 ,the sterling was up 0.74% at 1.2671 against the greenback.
• Immediate resistance is located at 1.2706(38.2%fib), any close above will push the pair towards 1.2749(Higher BB).
• Support is seen at 1.2654(50%fib) and break below could take the pair towards 1.2485(Dec 26th low ).
Recommendation: Good to buy around 1.2650 with stop loss of 1.2600 and target price of 1.2740
