GBP/USD at a crossroads as BoE rate decision looms

GBP/USD at a crossroads as BoE rate decision looms

GBP/USD is facing a pivotal moment near the 1.2500 round level and its 50-day simple moving average (SMA) just a few hours before the Bank of England’s policy announcement at 12:00 GMT. A decisive break above this psychological barrier could fuel optimism that the recent rebound from the 14-month low of 1.2098 is something more than a fleeting recovery.

From a technical standpoint, caution is warranted as the rise in the RSI seems fragile and the Stochastic oscillator is already near its 80 overbought level, hinting at easing buying interest. If the bears take over, the price could slide towards the 20-day SMA at 1.2350 and then retest the support trendline from January at 1.2300. A continuation lower and beneath 1.2235 could target the crucial area of 1.2100-1.2160. Read more…

GBP/USD Forecast: Pound Sterling could extend uptrend on hawkish BoE

After posting gains for three consecutive days, GBP/USD corrects lower on Thursday and trades near 1.2450 as investors gear for the Bank of England’s (BoE) monetary policy announcements.

On Wednesday, the disappointing ISM Services PMI data made it difficult for the US Dollar (USD) to find demand. Additionally, the bullish action seen in US stocks put additional weight on the currency’s shoulders, allowing GBP/USD to hold its ground. Read more…