GBPUSD – Looks bullish heading into BoE Decision

The GBPUSD pair could be volatile on Thursday as the Bank of England (BoE) decides on monetary policy later in the day. Although all nine MPC members are expected to vote for rates to stay unchanged, the following commentary will be significant to traders and investors.

Bulls managed to push Sterling above the long-term bearish trend line, which signals the bearish trend has ended. As long as the cable remains above this trend line, currently around 1.2960, the short-term outlook appears neutral-to-bullish.

However, if today BoE sounds dovish, the pound could depreciate quickly to the next support zone of previous lows, at 1.29. Then, the last support level for bulls is seen at the short-term bullish trend, for now located at 1.2850.

On the upside, bullish investors are having problems breaking above the key resistance in the 1.31 zone, which has stopped the cable in its tracks twice already.

Strong selling offers are most likely located here as breaking above would confirm the bullish bias, targeting the next resistance at 1.3150, where previous highs are located. July’s tops are at 1.3215 and could be in play eventually, should the BoE sound hawkish today.

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