• 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
