GBP/USD Treads Water Around 1.4450, BOE in Spotlight
The bulls tried hard to regain control almost through the Asian session, but in vain, as the GBP/USD pair
continues to consolidate the downside on 1.44 handle ahead of key risk
event for this week, the BOE monetary policy decision and quarterly
inflation report (QIR).
GBP/USD supported above 5-DMA at 1.4431
The GBP/USD pair trades almost unchanged at 1.4446, hovering in close
proximity to session tops posted at 1.4451. The cable is seen
oscillating back and forth in a 15-pips tight range as traders refrain
from taking directional bets before the BOE policy decision, minutes and
all important QIR.
Moreover, BOE president Carney’s comments at the central bank’s presser
will be closely heard for fresh insights on the UK’s inflation and
growth outlook.
In the meantime, the major will get influenced by the risk-off/on
sentiment prevalent in the markets amid a calm session ahead until the
BOE verdict.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4485/1.4503 (20-DMA/ 1h
200-SMA), above which 1.4550 (psychological levels) would be tested. On
the flip side, support is seen at 1.4400 (round number) below that at
1.4349/47 (100-DMA/ daily S2).
