GBPUSD: Sterling surges despite a massive rate cut

The British pound was trading in green during the early London session, having erased today's losses, and the GBPUSD pair was up 0.35%, changing hands at around 1.2950 at the time of writing.

The Bank of England announced an emergency rate cut, and it slashed the primary rate by 0.5% to the record low of 0.25%. As moves like this are usually bearish for the currency, the GBPUSD pair dropped some 100 pips on the news, but quickly recovered and was trading at new daily highs shortly after. What?

Moreover, there is now a robust bullish pin bar on the two-hour chart, which could lead to further gains. 

The resistance is currently seen in the 1.2960 - 1.2980 zone, and if bulls push the pair above this level, we could see the retest of the swing highs near 1.3150.

Alternatively, the support could be located at around 1.2900, and if not held, the pound might drop toward today's lows of 1.2830.

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