Technical Analysis

Pound Softens Ahead Of BOE Meeting

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The British pound has corrected sharply lower against the U.S dollar, finding interim support at the 1.3183 level, ahead of today's key Bank of England interest rate decision and policy decision.

Yesterday saw a resurgence in greenback, as President Donald Trump promised to lower corporate tax rates. We also saw technical selling in the GBPUSD pair accelerate, after the 1.3252 level was broken.

The GBPUSD pair risks a deeper downside correction today, if the Bank of England appears to be more dovish, pushing back expectations of an upcoming interest rate hike.

Key intraday technical support is located at 1.3183, with critical weekly support at the September 12th price low, at 1.3160.

Below 1.3160, traders will look to the 1.3125 level, the weekly pivot point, at 1.3109, and the pairs 50-day moving average, at 1.3016.

To the upside, GBPUSD intraday resistance is located at the 100-hour moving average, at 1.3214, with further resistance at 1.3228.

Above the 1.3228 level, intraday resistance is located at the daily pivot point, at 1.3252, and the former swing price high, at 1.3289.

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