The British pound has moved sharply higher against the U.S dollar during the European trading session, hitting 1.3188, as investors start to price-in a rate hike from the Bank of England this week. The GBPUSD pair currently trades around the price-highs of the day, as the BOE prepare to hike UK interest rates for the first time in over a decade. During the upcoming U.S trading session, we see the release of the Federal Reserve’s preferred measure of monthly U.S inflation data, CORE PCE.
Buying in the GBPUSD pair is set to increase once price-action breaks-above the 1.3201 technical level. Further bullish advancement towards the 1.3268 remains likely. Extended GBPUSD resistance is located at 1.3300 and 1.3360.
Should the GBPUSD fail to move above the 1.3201 level in the upcoming trading sessions, sellers will likely push price-action back towards the 1.3157 level. Extended intraday support is located at 1.3130 and 1.3116.
