• GBP/USD strengthened on Thursday as the dollar weakened , while investors awaited UK data on consumer spending and business activity.
• Market players will closely watch UK retail sales and preliminary business activity data, both due Friday, for insights into the economy's strength.
• Wednesday's UK inflation data showed that consumer inflation increased faster than expected in January. This unexpected rise could reduce the likelihood of the Bank of England implementing two rate cuts later this year
• The Bank of England's (BoE) next monetary policy meeting is scheduled for March 20, 2025.
• Immediate resistance is located at 1.2640(38.2%fib), any close above will push the pair towards 1.2687(Higher BB).
• Support is seen at 1.2565(50%fib) and break below could take the pair towards 1.2491(61.8%fib).
Recommendation: Good to buy around 1.2600 with stop loss of 1.2550 and target price of 1.2680
