GBPUSD Chart Technical Outlook might advance to 1.3040 if the BoE shows a hawkish stance
The Pound found buyers at 1.2840 to pare some losses with all eyes on the BoE. The central bank is expected to cut rates by 25 basis points but the market will be attentive to changes in the inflation projections following the Labour Government’s new budget.
Any remarks suggesting higher inflationary risks will be understood as a more cautious approach to rate cuts which would push the pair higher.
The Fed is also expected to cut rates by 25 basis points later today and its outlook on inflation following Trump’s unexpected sweep will also be analysed with interest.
From a technical perspective, a potential double bottom at 1.2840 and the bullish divergence suggest the possibility of some correction. The pair is showing a moderately bullish tone on Thursday. Resistances are at 1.2960 and 1.3045. Below 1.2850, the next target is 1.2750.
