• GBP/USD rose higher on Thursday as sterling rallied after the Bank of England held its interest rate steady.
• The Bank of England held interest rates steady on Thursday and outlined scenarios for the Iran war’s economic impact, warning that one could necessitate a “forceful” rise in borrowing costs.
• The Monetary Policy Committee voted 8–1 to hold the Bank Rate at 3.75%, with Chief Economist Huw Pill the lone dissenter calling for a hike to 4.0%, in line with Reuters poll expectations.
• Amid rising uncertainty over the war’s duration and economic fallout, the Bank of England dropped its usual central forecasts for inflation and key indicators on Thursday.
• Immediate resistance is located at 1.3595(Daily high), any close above will push the pair towards 1.3689(38.2%ib)
• Support is seen at 1.3559(50%fib) and break below could take the pair towards 1.3461(SMA20).
Recommendation: Good to buy around 1.3570 with stop loss of 1.3460 and target price of 1.3650
