The GBP/USD pair trades mute around the 1.4200 figure, with no catalysts coming from the UK, as the calendar in the kingdom is empty once again. The Pound's latest upward corrective movement seems to be exhausted, but the strong comeback in oil's prices and a generally weaker dollar, are keeping the pair in consolidative mode near its recent highs.
The upcoming ECB´s decision is probably going to have a limited effect in the Pound, but a weaker Euro could lift the GBP/USD in the short term, up to the recent highs in the 1.4280 region. Technically, the 4 hours chart shows that the price is hovering around a horizontal 20 SMA, while the technical indicators are aiming slightly higher, but around their mid-lines, not enough to confirm an upward move.
More relevant is the fact that the pair has been unable to extend beyond the 200 EMA, still around 1.4270. Should the pair rally, 1.4330 is the first probable target, en route to the 1.4370 price zone. To the downside, the immediate support comes around 1.4170, where short term buying interest has been steadily surging these past few days. Below it, the pair will probably accelerate is decline down to the 1.4120/30 price zone, while further declines should see the pair testing the 1.4060 level.
View the live chart of the GBP/USD
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