FxWirePro: GBP/USD runs out of steam but maintains bullish outlook

• GBP/USD eased slightly on Thursday after the solid gains triggered by a Federal Reserve tone that came in less hawkish than markets had anticipated.

• The softer messaging from Chair Jerome Powell helped lift GBP/USD, which briefly surged to a seven-week peak of 1.3391 during Asian trading before easing back toward 1.3360 as the market paused for breath.

• Attention now turns to domestic risk events. The Bank of England is widely expected to cut interest rates at its December 18 meeting, with policymakers likely to remain narrowly divided in a probable 5–4 vote.

• Markets will also watch Friday’s UK GDP release for October, due at 0700 GMT, where analysts are forecasting a modest 0.1% rise, reinforcing the narrative of a sluggish but stabilizing economy.

• Meanwhile, markets are placing a roughly 86% chance of the Bank of England cutting interest rates by a quarter of a point to 3.75% at its next meeting on December 19 .

•   Immediate resistance is located at 1.3403(50%fib), any close above will push the pair towards 1.3432(Higher BB)

•  Strong support is seen at 1.3294(Dec 10th low) and break below could take the pair towards 1.3226(38.2%fib).

  Recommendation: Good to buy around 1.3370, with stop loss of 1.3300 and target price of 1.3450.