The British pound continues to consolidate around the 1.3900 handle against the greenback on Thursday, as traders remain cautious ahead today’s key European Central Bank policy meeting. The GBPUSD pair earlier failed to hold above its monthly pivot point, located at 1.3920, as the U.S dollar index recovered slightly. With a lack of upcoming macroeconomic data from the United Kingdom, sterling traders are likely to focus on a break of the recent narrow trading-range between the 1.3860 and 1.3930 levels.
The GBPUSD pair is intraday bullish whilst trading above the 1.3860 level, key upside targets remain 1.3970 and 1.4021.
Should the GBPUSD pair trade below the key 1.3860 support level for a sustained period, price-action will likely turn bearish and move towards the 1.3822 and 1.3765 levels.
