GBP/USD consolidates below 1.2950 ahead of Super Thursday

Matías Salord FXStreet

GBP/USD is falling modestly on Wednesday and still remains near the 1.3000 handle. The pair earlier today rose toward that area but turned to the downside after hitting 1.2987. During the American session dropped below 1.2950 and currently is trading slightly above daily lows at 1.2930/35.

The pair continues to move sideways, consolidating April’s gains and still near multi-month highs.

Tomorrow is a relevant day for the pound. First, industrial and manufacturing production data will be released at 08:30 GMT. Then, at 11:00 GMT, the Bank of England will announce its decision on monetary policy and will publish the statement, the minutes of the Monetary Policy Committee meeting and the Quarterly Inflation Report. Volatility across Pound’s crosses is likely to rise.

Three things to watch on BoE 'Super Thursday'

Technical levels

According to Valeria Bednarik, Chief Analyst at FXStreet, the key level to the upside is1.3000 first, followed by the 1.3060 region, where the pair bottomed/topped multiple times late 2016. She affirms that above, the next resistance comes at 1.3110.

“Below 1.2900, on the other hand, will expose 1.2830, followed by the 1.2760 region, the lowest since May's announcement early April”, explained Bednarik.

A BoE meeting before the UK elections - Bank of England rate decision LIVE coverage

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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