GBP/USD Treads Water Around 1.4450, BOE in Spotlight

GBP/USD Treads Water Around 1.4450, BOE in Spotlight

12 May 2016, 07:25
Roberto Jacobs

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).


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