GBP/USD Trims losses, Tests Hourly 200-SMA Ahead of BOE
The offered tone around the GBP appears to lose steam in the European morning, now allowing the recovery in GBP/USD towards 1.42 handle, as focus now remains on the BOE policy decision.
GBP/USD awaits BOE monetary policy meet
The GBP/USD pair trades -0.19% lower at 1.4179, reversing a dip below 1.41 handle. The ongoing recovery in the oil prices combined with positions rebalancing ahead of the BOE event, aided the minor rebound staged by the cable post European open.
The bearish pressure on the pound remains intact as the US dollar continues to hold the reigns against its major peers. While looming Brexit concerns also continue to weigh down on the GBP/USD pair. According to the latest Brexit polls by Yougov, the "remain" and "leave" camps were both tied at 39%, while 22% of UK citizens were undecided at the time of the poll.
All eyes remain on the BOE decision, with wide expectations that the central bank will leave the monetary policy unchanged, while voting composition may show all nine policymakers voted for policy settings to remain unadjusted.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4197/1.4200 (5-DMA/ round number), above which 1.4225/50 (1h 50-SMA/ daily R1) would be tested. On the flip side, support is seen at 1.4091 (daily low) below that at 1.4044/38 (Apr 7 & 8 Low).