GBP/USD Price Analysis: 1.3285-90 guards immediate upside, BOE eyed on Super Thursday
- GBP/USD struggles to extend post-Fed gains ahead of the key BOE monetary policy meeting.
- 20-DMA, previous support line from July and 61.8% Fibonacci retracement challenge buyers.
- Decending trend line from October 28 restricts short-term declines.
- RSI recovery suggests further gains but it all depends upon BOE Statement.
GBP/USD fades two-day rebound, eases to 1.3255 during the Asian session, as the cable traders brace for the “Super Thursday” comprising Bank of England (BOE) monetary policy decision.
Read: BOE Preview: Omicron eliminates rate hike chances, voting pattern critical to GBP/USD reaction
In doing so, the quote remains inside the 140-pip envelope between the resistance-turned-support line from October and a descending trend line from late July, respectively around 1.3145 and 1.3285.
That said, the RSI recovery favors the GBP/USD pair’s earlier run-up. However, a clear upside break of the 1.3285 won’t be enough for the bulls to retake controls as 20-DMA and 61.8% Fibonacci retracement level of September 2020 to June 2021 upside adds to the upside filters around 1.3290.
Following that, the early November’s swing low near 1.3355 and September’s bottom of 1.3411 will be in focus.
On the flip side, a clear break of the 1.3145 will challenge the 1.3100 threshold before targeting the 78.6% Fibo. level near 1.3015. However, the quote’s weakness past 1.3015 will be questioned by the 1.3000 psychological magnet.
Should GBP/USD bears conquer the 1.3000 mark, a downward trajectory towards November 2020 low near 1.2850 can’t be ruled out.
GBP/USD: Daily chart
Trend: Further weakness expected