FxWirePro: GBP/USD reverses recent rally, bias back to downside
GBP/USD declined on Monday as sterling attracted selling interest as investors attention turned to this week's Bank of England meeting and a domestic election campaign. The Bank of England meets on Thursday to discuss po…
GBP/USD declined on Monday as sterling attracted selling interest as investors attention turned to this week's Bank of England meeting and a domestic election campaign.
The Bank of England meets on Thursday to discuss policy and issue its quarterly inflation report.
The Bank surprised markets earlier this year by delivering a hawkish message on the chances of rises in interest rates, generally read as reflecting concern that further falls for pound would boost inflation and weaken consumer spending power.
The pair made daily lows at 1.2927 but recovered to trade at 1.2941 levels in the afternoon US session.
Further upside for this pair is expected to be limited as strong resistance level at 1.2987 is set to limit upside and bring decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2940, a break above this level would expose the cable to next resistance level at 1.2987 levels.
To the downside strong support can be seen at 1.2897, a break below at this level will open the door towards next level at 1.2841.
