• GBP/USD edged higher on Friday as traders digested UK business activity and awaited remarks from Bank of England governor Andrew Bailey.
•British business activity rose at its slowest rate in five months in September, as companies and consumers held back on major spending while awaiting the impact of potential tax increases in the upcoming November budget, according to a survey published Friday.
• UK services PMI fell to 50.8 in September, its lowest since April and below the initial 51.9 estimate, after August’s 54.2 reading.
• Bank of England Governor Andrew Bailey is scheduled to speak at 13:20 GMT, with the address likely to offer clues on the central bank’s monetary policy.
• BoE officials are split on whether a short-term surge in inflation near double the target should delay further rate reductions from 4%.
• Immediate resistance is located at 1.3505( SMA20), any close above will push the pair towards 1.3559(38.2%fib)
• Strong support is seen at 1.3378(50%fib) and break below could take the pair towards 1.3314(Lower BB).
Recommendation: Good to buy around 1.3440, with stop loss of 1.3400 and target price of 1.3520
