FxWirePro: GBP/USD rises from three week low, bulls take aim at 38.2%fib

• GBP/USD rebounded strongly  from three week low on Thursday   as sterling was helped  by global stock gains and increased risk sentiment.

•  Data released on Wednesday by Britain’s Office for National Statistics showed that economic output remained unchanged in July.

• The notable slowdown in price growth could offer the Bank of England an opportunity to accelerate rate cuts in a bid to stimulate the UK economy.

•   The Bank of England meets next week, with futures markets indicating about an 80% probability that interest rates will stay unchanged, following a 25 basis point rate cut in August.

•  At GMT 15:10  the pair was trading up 0.21% at 1.3052, recovering from three week low.

•   Immediate resistance is located at 1.3154( 38.2%fib), any close above will push the pair towards 1.3231(Sep 6h high)

•  Strong support is seen at 1.3022(50%fib) and break below could take the pair towards 1.3000(Psychological level).

  Recommendation: Good to buy around 1.3070 , with stop loss of 1.3000 and target price of 1.3200