GBPUSD BUYING SET TO INCREASE ABOVE 1.3201

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.