GBP/USD Price Analysis: Cable find some resistance ahead of the previous wave high at 1.3170

GBP/USD 30-minute chart

Ahead of the Bank of England (BoE) meeting tomorrow GBP/USD has stalled at the previous wave high on the chart below (blue line). There is not expected to be any change to rates or QE at the meeting tomorrow but traders will be looking closely at the language used. They are expected to keep a cautious tone which is understandable considering the uncertain nature in the world due to the COVID-19 pandemic. 

Looking closer at the chart, the next major support level is at the orange line near the psychological 1.31 area. Beyond that, the main consolidation low stands at 1.2981 just below the red support zone. There is a black downward sloping internal trendline that has been used as both support and resistance that also could provide support.

The indicators are looking mixed at the moment. The MACD histogram is red but the signal lines are above the zero level. The Relative Strength Index is still above the 50 mark and there is still room to move into the overbought area. 

Overall the pair is still in an uptrend. This is mainly due to USD weakness rather than GBP strength. It is very difficult to predict an end to this trend at the moment but there could be some interesting volatility which could lead to opportunity after the BoE meeting tomorrow. If the price does move lower it could represent another good buying opportunity due to the unrelenting weakness in the greenback.

Additional levels