The Pound Sterling was traded cautiously by investors ahead of the outcome of the Bank of England's monetary policy meeting today.
The Bank of England (BOE) is expected to keep interest rates unchanged at 5.25% and a follow-up speech by the governor will be watched for further indications of the central bank's monetary policy direction.
On the chart of the GBP/USD currency pair, it can be observed that the price experienced a decline from the beginning of the week with the movement of the Pound being more gloomy compared to the US dollar.
The US dollar has shown a recovery at the beginning of the week but the price movement was flat throughout Wednesday yesterday.
After the decline in price penetrated the 1.25000 level, the price remained flat below it yesterday with a small range of movement of only around 30 pips.
Until continuing to the Asian session this morning (Thursday), the price is still slowly flat below the 1.25000 level as a resistance.
Remaining as a bearish signal, the price is seen to be still moving below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart.
Further price movements will be determined after the decision of the BOE policy meeting.
The expectation of a lower decline that will continue will lead to a concentration level that is around 1.24000.
If the decline continues beyond that level, the support zone at 1.23000 becomes the price target to be tested.
On the other hand, if the price surges above the 1.25000 level and crosses the MA50 barrier, it will be a bullish signal for the price to resume the movement pattern of the last week.
The 1.26000 resistance is likely to be reached and it is not impossible for a further move higher to take place past last week's levels to record new highs.
