GBP/USD analysis: consolidating near multi-month lows, waiting for BOE

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3542

GBP/USD bounced for a second consecutive day from the key 1.3480 region.
Market players sidelined ahead of Thursday's data, BOE's decision.

The GBP/USD pair bounced from 1.3484 to trim most of its daily losses mid- US afternoon, as headlines regarding US President´s decision on the Iranian nuclear deal triggered some risk aversion that interrupted dollar's rally and sent it marginally lower against its major rivals. Data coming from the UK disappointed, as according to Halifax, house prices in the three months to April were 2.2% higher than in the same period a year earlier, down from the previous 2.7% annual growth, while monthly basis, prices fell by 3.1% in April, much worse than the expected 0.2% decline. Wednesday will offer a data-light calendar from the UK, with attention centered in the upcoming BOE's Super Thursday. The intraday recovery pushed the pair up to its 20 SMA in the 4 hours chart, with the pair still unable to clearly break above the indicator. The Momentum turned higher in neutral territory, while the RSI bounced from oversold readings but remains below its mid-line, limiting the upward potential to a corrective movement, more likely after the pair lost roughly 900 pips. The pair has bottomed at 1.3481 last July, making of the 1.3480 region a strong support for the upcoming sessions, with a break below the level probably initiating a steeper downward move.

Support levels: 1.3480 1.3445 1.3410

Resistance levels: 1.3550 1.3590 1.3625

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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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