#GBPUSD: The Pound Is Back at 1.36 — Can It Break Out of the RanGreat British Pound vs. US DollarFX:GBPUSDStriforThe pound continues to recover amid U.S. dollar weakness and is once again attempting to establish itself above the 1.36 area. With complete interest rate parity between the Federal Reserve and the Bank of England at 3.75%, the U.S. dollar's previous rate advantage has disappeared. Sterling is also receiving additional support from market expectations that the Bank of England's next move could potentially be a rate hike. At the latest meeting, three members of the Monetary Policy Committee voted in favor of tightening. Technically, the move back above 1.34 has brought GBPUSD toward the upper boundary of the multi-month 1.315–1.36 range. The 1.36 area is now the key level to watch: a sustained move above it could confirm the beginning of a new bullish phase, while another rejection would keep the pound within its previous broad trading range.