FxWirePro: GBP/USD steadies ahead of BoE decision

• GBP/USD steadied around 1.3650  on Thursday  as market looked ahead to a policy decision from the Bank of England.

• The Bank of England is expected to hold rates at 4% while slowing the pace of its £100 billion ($136.1 billion) annual government bond sales in response to recent debt market volatility.

• August’s rate decision passed by a narrow 5–4 margin, and economists now expect the BoE to vote 7–2 to keep rates on hold this month as it waits for clearer signs that labor market-driven inflation pressures are easing.

• Governor Andrew Bailey said this month there was now “considerably more doubt about exactly when and how quickly” the BoE could cut rates further  a message he believed markets had absorbed.

•.  At GMT 10:28, the pound   was up  0.17% to 1.3649 against the US dollar.

•   Immediate resistance is located at 1.3673(38.2%fib), any close above will push the pair towards 1.3699(Higher BB)

•  Strong support is seen at 1.3563 (50%fib) and break below could take the pair towards 1.3525(SMA20).

  Recommendation: Good to buy around 1.3630  with stop loss of 1.3560 and target price of 1.3700