•GBP/USD edged higher on Thursday after the BoE kept rates unchanged and flagged inflation and global risks as key concerns.
• As expected, the BoE left rates at 4.25% on Thursday, warning of labour market weakness and energy price risks linked to Middle East instability.
• The BoE held rates after a 6–3 vote, with Deputy Governor Ramsden joining two colleagues in calling for a 0.25% cut due to inflation and global uncertainty.
• The BoE maintained its inflation forecast, expecting a peak of 3.7% in September and an average just below 3.5% for the second half of the year.
• Immediate resistance is located at 1.3557(June 11th high), any close above will push the pair towards 1.3629(23.6%fib)
• Strong support is seen at 1.3409(38.2%fib) and break below could take the pair towards 1.3359(Lower BB).
Recommendation: Good to buy around 1.3440 with stop loss of 1.3350 and target price of 1.3560
