GBP/USD Capped Below 1.45 ahead of BOE Inflation Report Hearings
The GBP/USD pair
consolidates the downside as we progress towards the European session,
having faced rejection just a thread-line short of 1.45 handle.
GBP/USD supported above 20-DMA at 1.4476
Currently, GBP/USD trades modestly flat at 1.4480, struggling hard to take-out 1.45 barrier. The cable remains side-lined below 1.4500 levels as markets remain cautious and refrain from placing big bets ahead of the BOE’s inflation report hearings. At these hearings the BOE Governor and several MPC members testify on inflation and the economic outlook before Parliament's Treasury Committee.
The upside also remains capped as renewed fears over a Brexit vote and its impact on the overall UK economy continues to weigh on the investors’ minds. While broad based US dollar strength also keeps the gains in check in the major.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4536/40 (daily R1/ 1h 100-SMA), above which 1.4600 (round number) would be tested. On the flip side, support is seen at 1.4476/74 (20 & 10-DMA) below that at 1.4400 (May 18 Low).