GBP/USD: watch out for the hourly close, bullish above 1.5538

• The GBP/USD spot was rejected at the hourly 50-MA; pushing the pair below 1.5549 (50% of June rally, hourly 200-MA) and 1.5538-1.5540 (inverted head and shoulder extended neckline). Only an hourly close below 1.5538 would open doors for a sell-off to 1.55 levels.
  
  The dip below 1.5538 hs already happened, but a failure to see an hourly close below the same could provide second wind to the GBP bulls.
  
  I would initiate fresh long in case the hourly candle sustains above 1.5538, for a target of 1.5570-1.56 with stops below 1.5510.
  

GBP bulls could get second wind ahead of tomorrow's BOE minutes

as there is a slim chance of minutes showing a vote or two in favour of lift-off. In my opinion, the BOE may have began telegraphing an interest rate hike more aggressively, which is evident from Carney's statement last week that rates could rise at th turn of this year.