The first part of Thursday’s trading session was spent with no changes to the overall price level for GBP/USD, as traders were cautious prior to the BOE policy statement scheduled for 1200GMT. Even though the bank kept the rates on hold, Carney’s comments about sooner hike strengthened the British Sterling above its two-day resistance of 1.40. This relatively high position was not maintained for long, as the 200-hour SMA near 1.4075 forced bulls to abandon their positions as a result of which the Pound fell slightly below the 38.20% Fibo and the 100-hour SMA. However, it did remain above the 55-hour SMA which could allow bulls to make another advancement, especially if the UK reports solid manufacturing production data at 0930GMT. A possible trading range for today could be 1.4060/1.3830.
