GBP/USD analysis: bearish trend in pause ahead of BOE

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3135

The Pound gained ground on solid UK money data, broad dollar's weakness.
GBP/USD confined to a tight range ahead of BOE's Super Thursday.

The Pound managed to stay above the 1.3100 figure against the greenback, with the pair posting a shallow intraday advance that fell short of changing its negative bias. Further supporting the Sterling were UK money figures released at the beginning of the London session, as mortgages approvals advanced to a five-month high of 65,519, while consumer credit growth continued expanding at an annual pace of 8.8%. The UK won't provide relevant data this Tuesday, with attention now centered in the Bank of England monetary policy meeting next Thursday, and whatever Carney & Co. decided on rates. Chances of a hike were dented all through this past month by softer-than-expected data. Technically, the GBP/USD pair remains in a bearish market, having been steadily falling ever since topping at around 1.4300 last May. In the shorter term, and according to the 4 hours chart, the pair presents a neutral-to-bearish stance, with the lack of clear directional strength exacerbated by summer limited volumes. In the mentioned chart, the price stands a handful of pips above a flat 20 SMA and below a bearish 200 EMA, while technical indicators corrected higher, with the Momentum still in negative territory and the RSI turning south right after entering positive territory. The main support from here continues being the 1.3090 level, while spikes beyond 1.3200 ahead of BOE will likely attract selling interest.

Support levels: 1.3090 1.3045 1.3010

Resistance levels: 1.3150 1.3190 1.3230

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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