GBP/USD Price Analysis: The pound stutters ahead of 1.32 despite a less dovish BoE

GBP/USD daily chart

Cable has had an interesting session. There was some early GBP strength after the Bank of England was less dovish than some analysts might have expected. There was no move on rates and QE but the MPC members backtracked on their stance on negative rates saying "negative rates are in the BoE toolbox, but no plans to use them".

Looking at the chart, there was a spike higher but the price has pulled back somewhat. The daily candle might be a shooting start or inverted hammer which is bearish but we would need to wait for the close for confirmation. There is also a resistance one at 1.32 and there could be a sticky point there but for now, the trend is still up.

On the downside. 1.30 has proved itself to be a great support area. On the lower timeframes, it is slightly clearer but the rejection at the psychological level was solid. If we are looking for the next support It would still be at the 1.30 zone but beyond that, there is another level at the purple line near 1.28 and the price is quite some way away from there.

The indicators are still looking very bullish. The Relative Strength Index is in the overbought zone but that does not always mean a reversal is coming. The MACD histogram bars are still green and the signal lines are also still above the mid-point. 

Overall, this is still a firm uptrend. On the 4-hour timeframe, there is a Relative Strength Index divergence but only a break of 1.30 would confirm the bearishness. Tomorrow could be a volatile session (NFP) and much of the price action will depend on the dollar. 

Additional levels