- GBP/USD rose higher on Thursday as dollar was hurt after the U.S. Federal Reserve left policy unchanged and appeared less confident about inflation picking up, which investors took as a sign rates could be kept low for longer.
- Sterling also strengthened after data showed Britain's economy gathered speed in the second quarter after almost stalling at the start of the year, pouring cold water on expectations for UK interest rate hikes in the coming months.
- Growth of 0.3 percent on the quarter was up from 0.2 percent in the first three months of the year, in line with forecasts.
- The pair remains under bulls control unless until it trades above 1.2960 support level, therefore it is good to buy this pair on dips.
- To the upside, the strong resistance can be seen at 1.3159, a break above this level would expose to cable to next resistance level at 1.3200.
- To the downside immediate support can be seen at 1.3057, a break below will open the door towards next level at 1.2960.
Resistance Levels
R1: 1.3159 (38.2% Retracement Level)
R2: 1.3200 (Psychological levels)
R3: 1.3268 (23.6% Retracement Level)
Support Levels
S1: 1.3057 (50% Retracement Levels)
S2: 1.2960 (61.8% Retracement Levels)
S3: 1.2917 (July 3rd lows)
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