• GBP/USD remained steady on Monday diverging rate expectations between the UK and the U.S., which favored sterling.
• Fed is on pace for a total of 125bp of rate cuts in 2024, while the BoE is expected to ease 64bp by the MPC meeting on Dec. 19.
• At GMT 16:54, the pair was trading up 0.18% at 1.3341 retreating from daily low 1.3256.
• Technical signals are strongly bullish as RSI is at 68, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.3357( 23.6%fib), any close above will push the pair towards 1.3406 ( Higher BB)
• Strong support is seen at 1.3272(Sep 20th low) and break below could take the pair towards 1.3233 (38.2% fib).
Recommendation: Good to buy around 1.3320, with stop loss of 1.2950 and target price of 1.3380
