Investors were wary of movements for the Pound Sterling today ahead of the outcome of the England central bank’s monetary policy meeting in the European session.
The Bank of England (BOE) is expected to maintain interest rates, however what is more in focus is a central bank statement that will provide clues on policy setting.
Since the beginning of the week, the Pound has performed well to rebound after negative sentiment put pressure on the British currency in previous weeks.
It can be seen that the price on the chart of the GBP/USD pair managed to maintain the bullish pattern until it reached the concentration level of 1.4000 before declining from the resistance level.
The rise in prices in the European session yesterday was also seen to be driven by good readings of manufacturing and services PMI data in the UK, supporting Pound trading.
But towards the end of the New York session, prices were seen declining due to the re -strengthening of the US dollar with the return of policy tightening talks by the Federal Reserve (Fed) making investors wary of changes in price trends on the GBP/USD chart.
Even so, the price is seen still moving in a bullish trend above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the GBP/USD chart.
If the bullish pattern is successfully maintained, the price is likely to be able to break the resistance of 1.4000 before continuing to rise towards the SBR (support become resistance) zone of 1.41000.
On the other hand, if the US dollar shows a clearer strengthening, the price will fall below the 1.39000 level before returning to the 1.38000 support zone tested earlier in the week.
A lower price drop below the support zone will continue the previous bearish trend with the nearest target market expected to be around 1.37000.
