• GBP/USD steadied 1.3200 level on Monday as the Bank of England (BoE) remained cautious about committing to a predetermined rate-cut path.
• BoE's Bailey said that interest rates would have to remain restrictive for sufficiently long and the course will therefore be a steady one .
• Investors were pricing a roughly one in three chance of the BoE cutting interest rates by a further quarter-point at its September meeting.
• Technical signals are strongly bullish as RSI is at 75, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.3228( 23.6%fib), any close above will push the pair towards 1.3253( Higher BB)
• Strong support is seen at 1.3138(38.2%fib) and break below could take the pair towards 1.3083 (Aug 23rd low).
Recommendation: Good to buy around 1.3190, with stop loss of 1.3100 and target price of 1.3280.
