GBP/USD (current price: 1.4432)
The pound has been trading in a narrow range, in a volatile fashion, against the majors for the last two days as a lot of investors took a step back before today’s BOE meeting. Cable is stuck between the 1.4400 and the 1.4475 levels, but the underlying short-term trend remains bullish. Odds favor the continuation of the advance that started at the end of February, although a dovish statement might cause a spike lower in the pair. Additional support below 1.44 is found near 1.43 while the 1.465 level remains the most important resistance above the current price.
Our assessment: Cable will likely break out from its recent range following the BOE announcement, and traders should prepare for heightened volatility around the decision.
