GBP/USD Price Analysis: Range bound around 200-DMA, awaiting BoE’s decision

GBP/USD trades with minor losses, movements bounded by key levels before BoE decision.
Technical outlook neutral to slightly bullish; resistance at recent high of 1.2594 and 50-DMA at 1.2607.
Break below 200-DMA at 1.2545 could trigger further declines, with supports at 1.2500 and May 1 low of 1.2466.

Christian Borjon Valencia FXStreet

The Pound Sterling registers anemic losses against the US Dollar as traders brace for the Bank of England’s (BoE) monetary policy decision on Thursday. The pair remained within the 1.2529-1.2594 boundaries during the last few days, capped by key support and resistance levels. The GBP/USD trades at 1.2556, down 0.04%.

GBP/USD Price Analysis: Technical outlook

The daily chart portrays the pair as neutral-biased, with momentum skewed to the upside, as depicted by the Relative Strength Index (RSI). The RSI is bullish, though close to the 50-midline, an indication that volatile price action could trigger a momentum shift.

With that said the first resistance of the GBP/USD would be the May 6 high at 1.2594. Once cleared, that could pave the way to test 1.2600, ahead of the 50-day moving average (DMA) at 1.2607. Further upside is seen at the 100-DMA at 1.2640, followed by the April 9 high at 1.2709.

On the other hand, if the GBP/USD dips below the 200-DMA at 1.2545, that would exacerbate a test of 1.2500. Once hurdled, the next support emerged at the May 1 low of 1.2466, followed by the 1.2400 figure.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price	1.2552
Today Daily Change	-0.0010
Today Daily Change %	-0.08
Today daily open	1.2562

Trends
Daily SMA20	1.2493
Daily SMA50	1.2611
Daily SMA100	1.2644
Daily SMA200	1.2547

Levels
Previous Daily High	1.2594
Previous Daily Low	1.2538
Previous Weekly High	1.2635
Previous Weekly Low	1.2466
Previous Monthly High	1.2709
Previous Monthly Low	1.23
Daily Fibonacci 38.2%	1.2573
Daily Fibonacci 61.8%	1.256
Daily Pivot Point S1	1.2536
Daily Pivot Point S2	1.2509
Daily Pivot Point S3	1.248
Daily Pivot Point R1	1.2592
Daily Pivot Point R2	1.2621
Daily Pivot Point R3	1.2648

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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