GBP/USD Buyers Eye Upside Ahead of BoE Decision
The Bank of England is expected to hold rates at 5.00%, with a vote split potentially influencing sterling and gilt yields. The vote split is key for sterling, with a closer result likely weighing on the currency. Despite potential risks, sterling remains a favored currency, reflecting positive market sentiment since the July U.K. election.
Technical Outlook
On the four-hour chart, GBP/USD continues to climb within an ascending channel. However, it is now testing a critical resistance level at 1.32535, which coincides with the pair’s two-year high. Should buyers gather enough momentum to break this resistance, further upside targets include 1.32809, 1.32951, 1.33157, and the ultimate goal at 1.33541.
Alternative Scenario
In case buyers fail to push beyond 1.32535, GBP/USD could retreat toward the immediate support at 1.32151. A break below this level would bring the next support at 1.31529 into focus. A decisive drop below this support would invalidate the current bullish outlook.
Technical Outlook
On the four-hour chart, GBP/USD continues to climb within an ascending channel. However, it is now testing a critical resistance level at 1.32535, which coincides with the pair’s two-year high. Should buyers gather enough momentum to break this resistance, further upside targets include 1.32809, 1.32951, 1.33157, and the ultimate goal at 1.33541.
Alternative Scenario
In case buyers fail to push beyond 1.32535, GBP/USD could retreat toward the immediate support at 1.32151. A break below this level would bring the next support at 1.31529 into focus. A decisive drop below this support would invalidate the current bullish outlook.
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