• GBP/USD rose higher on Thursday as sterling rose after the Bank of England cut interest rates as expected
• The Bank of England lowered its benchmark interest rate to 4% on Thursday, marking its fifth rate cut in 12 months.
• The decision came after a narrow 5-4 vote by the Monetary Policy Committee (MPC), highlighting deep divisions among policymakers..
• This split vote the closest in recent memory reflects the BoE’s growing dilemma: inflation remains elevated, yet economic activity and the labor market are showing signs of strain.
• The rate cut suggests the central bank is leaning toward supporting growth, but the strong dissent signals caution about the pace of further easing
• Immediate resistance is located at 1.3512(38.2%fib), any close above will push the pair towards 1.3590(Higher BB)
• Strong support is seen at 1.3390(SMA 20) and break below could take the pair towards 1.3324(50%fib).
Recommendation: Good to buy around 1.3400 with stop loss of 1.3320 and target price of 1.3480
