GBP/USD: Volatile ahead of BOE, Eases-off 1.4460
pair is seen fading a spike to daily tops, as the bulls take a breather
amid increasing nervousness ahead of the BOE verdict and more important
GBP/USD bounces-off 1.4400
The GBP/USD pair swung between gains and losses, now easing-off session tops reached at 1.4457 in the last hour. The cable bounced-off a dip to near 1.44 handle and recovered lost ground completely, before running through fresh offers at higher levels as markets expect the BOE quarterly inflation report and minutes to highlight concerns over the inflation prospects and wage-price growth. While BOE is expected to stand pat at its policy meeting, as widely anticipated, although, the voting composition will be the key, in order to gain further insights into the BOE interest rates outlook.
Meanwhile, the downside remains restricted amid persisting risk-on rally in the European equities and higher oil prices. Further, BOE Governor Mark Carney’s presser will also hog the limelight after the policy announcement.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4485/1.4498 (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).