Ella 
GBP/USD struggled to extend a winning streak that began on Monday, trading around 1.2770 during Friday’s Asian session. GBP/USD was boosted by a hawkish stance from the Bank of England (BOE).
As expected, the Bank of England chose to keep interest rates at 5.25% in its decision on Thursday. Bank of England Governor Andrew Bailey said there is still some way to go before inflation is consistent with target, adding to overall hawkish sentiment. Investors are awaiting purchasing managers’ index (PMI) data from both countries on Friday.
Additionally, technical indicators on the GBP/USD currency pair are sending bullish signals. The 14-day Relative Strength Index (RSI) is showing upward support above the 50 level, suggesting bullish momentum for the pair.
GBP/USD may face challenges near the psychological zone of 1.2800 levels. A solid move above the 1.2800 level could support a move towards the August highs at 1.2841 and then towards the main level at 1.2850.
On the downside, the psychological level of 1.2700 appears to be a key support area. A move below this level could push GBP/USD towards the 14-day exponential moving average (EMA) at 1.2624, followed by the 23.6% Fibonacci retracement at 1.2610.
If the pair’s decline extends beyond this point, it could hover near the 38.2% Fibonacci retracement level (1.2500).
