Three days of consecutive fall in the cable dragged the price to its pivotal level at 1.2920. Today the GBPUSD opened at 1.2930, made a high at 1.2960 before retracing back to 1.2930. The cable manages to hold the pivotal 1.2920 for three straight sessions and is on track to test the 100MA at 1.2890 if the price falls to maintain the pivotal.
Before the BOE meeting, we are going to trade between 1.2880-1.2980/1.3000, a 100 pip range. The weak daily RSI and the bearish turnaround of the daily oscillator should cap the rallies in the coming days. Against this setting, a lasting break of the 1.2980/1.3000 key resistance sounds tricky, and we rather fear a retracement to the next support 1.2830/1.2800 its 50MA.
The flip side, a step above 1.3030 would build the momentum towards 1.3060 and 1.3100.
Also read:EURGBP forecast
It is important to always keep in mind the risks involved in trading with leveraged instruments.
What is your Technical View?
Do you have a different idea? Please leave us a comment and get an answer from our professional analysts