GBP/USD toying with 1.3200 ahead of BoE

Pablo Piovano FXStreet

The Sterling is extending its sideline theme vs. the greenback on Thursday, now prompting GBP/USD to gyrate around 1.3200 the figure ahead of the key BoE meeting.

GBP/USD attention to BoE

Cable shed over a cent since yesterday’s fresh cycle tops around 1.3330 following a strong rebound in the demand for the US Dollar, particularly in response to rising speculations over Trump’s plans to finally implement his promised tax reform.

On the GBP-side, positive inflation figures during August (Tuesday) boosted the British Pound to levels last traded in September 2016 beyond the 1.3300 handle, although the above-mentioned pick up in USD and mixed results from the UK’s labour market on Wednesday plotted against an extension of the upside.

Later today, the BoE will hold its monetary policy meeting, which has gained in importance in light of the latest CPI figures. Market consensus expects the ‘Old Lady’ to refrain from making any significant announcements and the MPC members to vote 7-2 in favour of leaving current monetary conditions unchanged.

Across the pond, August’s inflation figures tracked by the CPI should keep the attention on the buck later in the session.

GBP/USD levels to consider

As of writing the pair is up 0.02% at 1.3211 and a break above 1.3300 (high Sep.12) would open the door to 1.3329 (2017 high Sep.13) and finally 1.3447 (high Sep.6 2016). On the flip side, the immediate support lines up at 1.3159 (low Sep.8) seconded by 1.3112 (23.6% Fibo of the 2017 up move).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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