GBP/USD around 1.2450 ahead of BoE

Pablo Piovano FXStreet

The Sterling is following south the rest of the risk-associated peers, taking GBP/USD to the mid-1.2400s ahead of UK data and the BoE’s Inflation Report.

GBP/USD looks to BoE

Despite the solid pick up in the demand for the greenback, the pair manages well to keep the trade within the familiar range in the mid-1.2400s, posting marginal losses ahead of the opening bell in the Old Continent.

GBP will be in centre stage later in the session, as the Bank of England will publish its February Inflation Report, including testimonies by Governor M.Carney and MPC members A.Haldane, G.Vlieghe and I.McCafferty before the Treasury Select Committee. In addition MPC member A.Haldane will release his Annual Report, while UK’s Public Sector finance figures are also due on the data front.

The House of Lords has started on Monday its 2-day debate of Article 50, which is expected to pass without amendments today.

From the positioning universe, speculative GBP net shorts have resumed the upside during the week ended on February 24, climbing to 4-week tops according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.05% at 1.2454 facing the next support at 1.2379 (low Feb.15) ahead of 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19). On the upside, a break above 1.2515 (20-day sma) would open the door to 1.2550 (high Feb.14) and finally 1.2715 (high Feb.2).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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