• GBP/USD recovered some ground on Friday as traders reassessed the Bank of England's rate outlook amid mixed economic data.
• Although the labour market is showing signs of cooling, it’s not deteriorating as much as feared, and sticky inflation continues to weigh on sentiment toward the pound.
• BoE Governor Bailey reiterated openness to further cuts if labor market weakens, highlighting economic slack and elevated inflation.
•Financial markets are betting on the BoE cutting rates by a quarter of a percentage point to 4% when it announces its next move on August 7, and see rates most likely falling to 3.75% by the end of 2025.
• Immediate resistance is located at 1.3561(38.2%fib), any close above will push the pair towards 1.3685(July 4th high)
• Strong support is seen at 1.3390(50%fib) and break below could take the pair towards 1.3294(Lower BB).
Recommendation: Good to sell around 1.3480 with stop loss of 1.3560 and target price of 1.3400
