FxWirePro: GBP/USD regains upwards momentum but unable to hold above 1.3700 level

• GBP/USD strengthened on Tuesday as investors positioned ahead of the Bank of England's interest rate decision on Thursday.

• Market participants expect the Bank of England to hold rates at 3.75% on Thursday before cutting borrowing costs once or twice later in the year..

• UK inflation rose faster than expected to 3.4% in December, the highest among G7 nations, though the BoE anticipates a drop to 2% by midyear.

• UK economic data will remain light until mid- to late February, when growth, employment, and inflation figures are released.

•Stronger-than-expected November GDP, December retail sales, and January business activity have helped lift the pound against the dollar this year.

•   Immediate resistance is located at 1.3700(38.2%fib), any close above will push the pair towards 1.3841(Jan 30th high)  

•  Strong support is seen at 1.3582(50%  fib) and break below could take the pair towards 1.3550(SMA 20).

  Recommendation: Good to buy around 1.3680 with stop loss of 1.3610 and target price of 1.3760