GBPUSD:- Pound against U.S Dollar drops 1.4% yesterday after Bank of England’s decision to hike its benchmark Bank Rate to 0.50% against 0.25%, for the first time since 2007, the single currency fell because the committee insisted further increases would be “very gradual”. On the technical flip the Pound against Dollar will find the support near 1.3000 levels. The daily chart is indicating a major support zone near current levels. A trend-line is connected with the help of previous bottoms is showing an upward slope, it is because of the lows which are getting higher with a bullish bias. Momentum indicator 14-day Relative Strength Index(RSI) is 41 mark, which is close to its oversold territory. We suggest the traders to stay on long/buy side.
Trade Idea:- Buy GBPUSD at 1.3020-30 for the target of 1.3320 with a safe stop-loss of 1.2930.