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FxWirePro: GBP/USD climbs above 1.34 after BoE's relatively hawkish cut

• GBP/USD firmed on Thursday as the pound strengthened following the Bank of England’s relatively • The Bank of England cut interest rates on Thursday following a narrow vote among policymakers, while signalling that the…

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FxWirePro: GBP/USD climbs above 1.34 after BoE's relatively hawkish cut
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• GBP/USD firmed on Thursday as the pound strengthened following the Bank of England’s relatively

• The Bank of England cut interest rates on Thursday following a narrow vote among policymakers, while signalling that the already gradual pace of easing borrowing costs could slow even further.

• The BoE delivered a 25-basis-point cut to 3.75% by a narrow 5–4 vote, with no policymakers backing a larger 50-bp reduction.

• The four other members voted to keep rates unchanged, citing concerns that Britain’s inflation rate  still the highest among the Group of Seven economies   could remain too high..

• Governor Andrew Bailey reversed his earlier stance and voted in favor of a rate cut, tipping the balance on the committee.

•   Immediate resistance is located at 1.3428(38.2%fib), any close above will push the pair towards 1.3526(23.6%fib)

•  Strong support is seen at 1.3350(50%fib) and break below could take the pair towards 1.3295(SMA 20).

  Recommendation: Good to buy around 1.3400, with stop loss of 1.3330 and target price of 1.3500

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