GBP/USD better bid near 1.3350, BOE in focus

The GBP/USD pair is seen extending its recovery from below 1.33 handle, and now breaks above stiff resistance located near 1.3340 region, with all eyes now on the BOE interest rates decision due later today.

GBP/USD eyes Wednesday’s high at 1.3373

Currently, GBP/USD trades +0.11% higher near fresh session highs of 1.3345, heading for a test of yesterday’s high printed at 1.3373 levels. The sentiment around the GBP remains buoyed amid higher oil prices, allowing the bulls to take on its recent bullish momentum further beyond 1.33 handle.

Moreover, the US dollar stages a minor correction against its major peers after having booked upbeat US jobs-led strong gains yesterday. Meanwhile, the USD index peeps into the red zone to trade around 95.45 levels.

Going forward, the BOE monetary policy decision along with the quarterly inflation report will be closely eyed for fresh direction on the major. The Bank of England (BOE) is expected to lower the main rate by 25 bps to 0.25%, in a bid to combat post-Brexit economic fallout.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3373 (3-week highs), above which 1.3400 (round number) would be tested. On the flip side, support is seen at 1.3305 (Jul 29 high) below that at 1.3284 (5-DMA).