The British pound is holding onto recent gains against the greenback as traders await the Bank of England monetary policy decision later today. Further bullish advancement above the 1.2530 level should provoke a test of the 1.2600 level. A loss of the 1.2425 support region is likely to see the GBPUSD suffering a deeper pullback towards the 1.2385 level.
The GBPUSD pair is only bearish while trading below the 1.2425 level, key support remains at the 1.2385 and 1.2350 levels. If the GBPUSD pair holds above the 1.2425 level, key resistance is found at the 1.2530 and 1.2600 levels.
@ben.smith887, yes, traders would have taken profits from their longs but Sellers have not stepped in ahead of the BOE news coming out later today. If there is a cut in rates there should be a sell-off but the consensus is that the bank keeps everything on hold. If the decision is not unanimous this may also cause a sell-off. Everything is still on hold due to Brexit essentially, a decision there (either way) will boost the GBP. The FED chair Powell stated Brexit and the Trade Wars as being the two main factors for global uncertainty and that is reflected in the GBPUSD. For now, we would be looking to buy the dips but will be doing so with smaller position sizes until some clarification from the fundamentals.
OctaFX_Official
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probably best not to marry a trade, be nimble and watch the tweets from the Donald Trump and the UK MPC
Seems like it’s a fundamental vs technical day/s!