Gbpusd Moves Higher

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Gbpusd Moves Higher

Gbp/Usd Moves Higher To 1.2800 On Boe Decision

Immediately after the BoE's decision to cut the rate by 25 bps, the GBP/USD pair dropped near weekly lows around 1.2750. However, this was followed by a recovery towards the 1.2800 handle on the BoE governor's comments about more policy easing.

Additionally, a bunch of weak US data also helped the GBP/USD to recover some of its lost ground, as it is now hovering near the 1.2800 handle.

For now, GBP/USD is slightly below 1.2800, which is solid support. Moreover, that's the same spot where the 200 SMA on the H4 chart is located.

1.2830 Is Next Target For Bulls

If the 200 SMA near the 1.2800 stays intact, it would mean more losses for the GBP/USD. In that case, there's a high chance that the pair will revisit the 1.2700 support once again.

successful break of the 1.2800 handles will open the doors to the 1.2830 resistance, which is the 50% retracement of Fibonacci. Following this, the next key targets for the GBP/USD bulls will be 1.2880 and then 1.2900.

The bigger picture shows that the GBP/USD is under bearish pressure after the recent decision from the Bank of England. So despite posting a little bit of recovery, the GBP/USD is still hovering near 3-week lows around 1.2800.

Meanwhile, even the US dollar is struggling to find buyers, which is yet another reason why the GBP/USD showed a little recovery. The recent meeting of the US Federal Reserve showed that the monetary policy was left unchanged, as forecasted by the experts.

However, Powell's comments mentioned how the members talked about the need to lower rates. This has further bolstered the odds of a September rate cut in the USA.

On the UK's side, the BoE delivered its rate cut of 25 bps as forecasted by the market players. After the BoE decision, the interest rate in the UK has risen to 5.0%.

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