- GBP/USD pares early losses to trade 0.11% lower but it could have been much worse.
- The price dipped below 1.30 but the buyers stepped back in and retook the key level.
GBP/USD 30-minute chart
It seems every US session the greenback sells-off at the moment. Over the last couple of days, the early GBP weakness has been reversed and by the end of the US session, the pair has moved back above breakeven. Tomorrow could see some change as the Bank of England are set to update the markets with their latest rate and policy decisions. Although there is no change expected there could be some update to the future path of monetary policy. Elsewhere, traders and investors will be looking to see if there is any change in the language used (hawkish or dovish).
Looking at the chart, the arrows highlight where the US dollar selling has kicked in over the last couple of sessions. There is a trendline at the top of the two peaks and if it gets broken it could indicate there is more upside to come. The key resistance is at the high on the chart of 1.3170 but the previous wave high of 1.3107 would need to be broken first.
The indicators are looking bullish at the moment too. The MACD histogram is green but the signal lines are still under the zero level. The Relative Strength Index is also positive and above the 50 area. There is still space for the indicator to move to the upside.
Overall, the price is still in a firm uptrend. There does seem to be some weakening in the upside momentum as in the EU session the pair does seem to drop off. Tomorrow will be a pivotal day and the Bank of England may indicate more stimulus is to come and that could mean more GBP strength if the past is anything to go by.