Investors are warned to be careful with price action on the GBP/USD currency pair chart today!
After several attempts since the beginning of the week, the price has finally managed to make a further increase above the resistance zone at 1.33000.
Previously, there was a surge at the close of last week to the 1.33000 level, but the price struggled to continue the rise above the resistance until Wednesday's trading.
Towards the end of the New York session, the price reached a new high this week near the 1.33700 level.
However, there is a risk of the price moving in the opposite direction again due to expectations for an interest rate cut by the Bank of England today, at 7 pm local time.
The Bank of England (BOE) is expected to cut interest rates by 25 basis points to 4.00% from 4.25% previously.
The price movement is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart, supporting further price increases to test the 1.34000 level.
If the increase continues higher, the 1.35000 level will be the next focus before the price targets the resistance zone at 1.36000.
However, if the BOE meeting decision pushes the price down to break through the MA50 support and the 1.33000 level, it will be a strong signal for a bearish trend change.
The price will head back to around 1.32000 or reach last week's low at 1.31400.
