GBP/USD looking glum near Friday's lows of 1.3550 as BoE Super Thursday lies ahead

Sterling still trapped by Friday's lows, with little motivation to try and stage a meaningful correction.
The BoE's Super Thursday ahead has already trapped GBP traders' attention with little of impact on the docket this week.

Joshua Gibson FXStreet

The GBP/USD managed to hold steady against the US Dollar through Monday's trading, eking out a 0.17% gain on the day. Tuesday saw a brief pop into 1.3577, but the pair has returned flat on the day, trading near 1.3555.

GBP/USD revival likely as dovish BoE may be priced in

Tuesday brings Halifax House Prices at 07:30 GMT for April, expected to show a -0.2% decline against the previous reading of 1.5%. While the indicator is a low-tier occurrence, it is expected to be an example of the lagging data that has been filing out of the UK as of late, and the Bank of England (BoE), which was one of the more hawkish central banks in recent months, has had to walk back their expected rate hike in May, and the BoE's rate call on Thursday is expected to be a non-event, contributing to the Sterling's recent slide.

GBPUSD is in downtrend but is oversold

GBP/USD analysis: consolidating at 4-month lows

GBP/USD levels to consider

The Sterling is already hinged on Thursday this week, as FXStreet's Chief Analyst Valeria Bednarik noted earlier: "this Thursday will be critical, as not only the BOE will announce its latest monetary policy decision, but will also unveil Industrial and Manufacturing Production data for March. In the meantime, the pair is short-term neutral, although consolidating at a 4-month low, with the upside potential well-limited according to technical readings in the 4 hours chart as the pair hovers around a bearish 20 SMA, while technical indicators have managed to regain some ground, the Momentum still heading north around its mid-line, but the RSI already losing its poise and turning south around 43. The pair bottomed last Friday at 1.3485, still the level to break to confirm an extension of the dominant bearish trend."

Support levels: 1.3510 1.3485 1.3450

Resistance levels: 1.3610 1.3645 1.3690

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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