Gbpusd Strong Around Key Level

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Gbpusd Strong Around Key Level

Gbp/Usd Strong Around 1.3300

GBP/USD continues to trade in green for the 3rd consecutive trading day and is seen near 1.3300. The pair is now just a few pips away from reaching its highest levels, only seen during March 2022.

The British Pound (GBP) is experiencing strong amid the BoE's decision to lower its portfolio of government bonds. The Bank of England plans to sell around 100 billion worth of bonds during the next 12 months.

Boe Holds Rates, Lowers Its Bond Buying

Also, the BoE has decided not to lower the rates at this time and wants to wait for more data. All of the actions by the BoE were positive for the GBP and that's what we are seeing in the GBP/USD pair.

On the other hand, the US Dollar has moved lower to record lows. In fact, such levels were only seen during July 2023, and the recent rate cut has affected the value of USD.

Also, around 25 to 50 bps rate cuts are still scheduled for the rest of 2024, which could send the GBP/USD higher.

If we look at the technicals of GBP/USD, the pair has made a successful breakout from its bearish trend line. So, that's also a major trigger that has allowed the GBP/USD to cross its near-term resistance levels.

However, the GBP/USD might be getting ahead of itself with the bullish moves. In simple words, a consolidation is highly likely on the intraday timeframe of the GBP/USD.

Once the consolidation is done, the next target for the GBP/USD should be 1.3365, followed by the next one around 1.3400. Once this hurdle is cleared, the next stop will be 1.3450.

On the other hand, the 1.3260 is a solid support as it was the previous YTD peak for the GBP/USD. So, any short-term selling will likely stop at the 1.3260 - 1.3250.

Right now, the fundamental and technical situation is now working in the favor of the GBP. However, that could change once we get some comments from the Fed officials.

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