The pound sterling is among the currencies that investors are focusing on today ahead of England’s central bank policy meeting in the European session.
The outcome of the meeting at 7pm Malaysian time, the Bank of England (BOE) is expected to continue to keep interest rates unchanged but the central bank's follow -up statement for policy indications will be heeded.
After the latest meeting, the UK economy is seen to be showing positive developments. Therefore, analysts do not rule out the possibility for the BOE to tighten their monetary policy even though it is still at an early period.
The price movement on the GBP/USD currency pair chart is seen flat towards the end of the week after a significant spike was exhibited in the price earlier in the week.
After jumping from the RBS (resistance become support) zone of 1.38000, the price increase was blocked at the resistance level of 1.39200.
Wednesday's trading also saw the price test the resistance level while the decline was supported by the Moving Average 50 (MA50) level for the 1 -hour time frame of the price movement which will be the next direction indicator on the GBP/USD chart.
If a bullish situation occurs, the price that surged past the resistance of 1.39200 will be expected to return to the resistance zone of 1.40000 as tested in last April's trading.
On the other hand if the price plummets, the RBS 1.38000 zone will return to the price focus again. Investors will assess the price reaction in the zone whether to continue the lower decline.
The next decline is seen heading up to the support zone of 1.37000 which supports the price to rebound in March and April trading.
