• GBP/USD edged lower on Tuesday as investors adopted a cautious stance ahead of the Bank of England’s policy decision later this week.
• Attention later this week will turn to the Bank of England's policy decision, where the central bank is expected to keep rates on hold, with investors watching for any signs of it moving towards raising rates later in the year.
• The BoE kept borrowing costs on hold in March as it waited to see the extent of the inflationary and growth hits from the conflict. With uncertainty still high, another no-change decision is expected on Thursday.
• Economists polled last week mostly expected an 8-1 vote by the MPC to keep Bank Rate at 3.75% this week after March's 9-0 vote. Unlike financial markets, they mostly do not foresee rate hikes this year
• Immediate resistance is located at 1.2540(50%fib), any close above will push the pair towards 1.3685(Higher BB)
• Strong support is seen at 1.3435(SMA 20) and break below could take the pair towards 1.3399(61.8%fib).
Recommendation: Good to buy around 1.3500, with stop loss of 1.3400 and target price of 1.3580
