The GBPUSD currency pair, currently at a rate of 1.27364, is seeing an increase in momentum and is moving slightly higher to 1.2730, indicating a rise of 0.17% for the day.

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• GBP/USD gains traction and edges higher to 1.2730, up 0.17% on the day.

The pair currently trades last at 1.27364.

The previous day high was 1.2728 while the previous day low was 1.2621. The daily 38.2% Fib levels comes at 1.2662, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2687, expected to provide support.

The GBP/USD pair holds a positive note and snaps a four-day losing streak during the early Asian session on Friday. The major pair currently trades at 1.2730, gaining 0.17% for the day.

The Bank of England (BoE) raised interest rates by 25 basis points (bps) to a 15-year high of 5.25% from 5% in its August policy meeting on Thursday. Markets anticipated that the BoE would likely hike two additional rates by the end of the year as inflation remains high. That said, the June UK Consumer Price Index (CPI) was 7.9%, nearly four times the BoE target of 2% and more than double the US rate.

BoE Governor Andrew Bailey stated on the policy outlook that the central bank expects inflation to fall to around 5% in October. He added that there is no presumed future path for interest rates.

On the US Dollar front, the US Department of Labor showed on Thursday that Initial Jobless Claims increased to 227,000 for the week ended July 29, matching expectations. The ISM Service PMI for July dropped to 52.7 from 53.9 prior and was worse than expected at 53. Lastly, Unit Labor Costs from Q2 came in at 1.6%, lower than the 2.6% expected.

Last week, the Fed decided to increase interest rates by a quarter percentage point in its July meeting. However, unlike the BoE, markets believe the Fed is nearing the end of its tightening cycle.

Market players will closely watch the US Nonfarm Payrolls due later in the day. This event could provide hints for a clear direction in GBP/USD. Also, the Unemployment Rate and Average Hourly Earnings will be released on Friday. In the absence of top-tier economic data releases from the United Kingdom, investors will digest the statement from the BoE meeting, and the USD price dynamic will be the main driver for the GBP/USD pair.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2732 at the time of writing. Pair opened at 1.2709 and is trading with a change of 0.18 % .

The pair is trading below its 20 Daily moving average @ 1.2898, above its 50 Daily moving average @ 1.2728 , above its 100 Daily moving average @ 1.258 and above its 200 Daily moving average @ 1.2311

The previous day high was 1.2728 while the previous day low was 1.2621. The daily 38.2% Fib levels comes at 1.2662, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2687, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2643, 1.2578, 1.2536
• Pivot resistance is noted at 1.2751, 1.2793, 1.2858

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