GBP/USD: watching for BoE this week - FXStreet

Valeria Bednarik, chief analyst at FXStreet explaind that the British Pound closed the week at 1.2944 against the greenback, not far from the 31-year low set at 1.2793 earlier this past week, and with the pair still meeting selling interest on attempts to advance beyond the 1.3000 level.

Key Quotes:

"The main focus is now in the upcoming Bank of England meeting this Thursday, as the Central Bank  is expected to cut the bank rate by 25 bps, and add more easing in the August meeting. The pair has found a temporal floor, having spent the last few days in consolidative mode, although the risk remains towards the downside"

"Technically, the daily chart shows that the Momentum indicator keeps grinding lower within oversold territory, while the RSI indicator consolidates below 30. In the same chart, the price is far below a bearish 20 SMA, still unable to catch up with price, all of which reflects the negative sentiment towards the UK currency.

Shorter term, and according to the 4 hours chart, the pair presents a neutral stance as the price is stuck around a bearish 20 SMA, whilst the Momentum indicator  hovers around its mod-line and the RSI indicator heads modestly lower around 41, supporting a downward extension on a break below 1.2895, the immediate support."