The British pound rebounds following strong economic data and a hawkish stance from the Bank of England

The British pound rebounded from a new multi-month low on Tuesday, buoyed by stronger-than-expected UK services PMI data and a hawkish stance from Bank of England policymakers. They indicated a potential delay in rate cuts, viewing an early reduction as more detrimental than a delayed policy easing.

The improved near-term outlook has lifted the price above the initial resistance at 1.2400, with the key 1.2446/56 resistance zone (including the falling 10-day moving average and Fibonacci 38.2% of 1.2709/1.2299) coming under increased pressure.

A close above these levels is required to signal an initial reversal and pave the way for further recovery towards the next targets at the 1.2500/60 zone (a round number, Fibonacci 61.8%, and the 200-day moving average).

Daily indicators remain mostly bearish, suggesting a limited correction before a larger downward trend may resume. A sustained break above the 200-day moving average could be a game changer.

Res: 1.2446; 1.2504; 1.2536; 1.2565

Sup: 1.2396; 1.2331; 1.2299; 1.2210