GBP/USD: Sterling to Snap 4-Day Winning Streak as Traders Eye BoE Rate Decision

Forex markets are pricing in another interest rate hold by the Bank of England on Thursday. Any room for surprises? Yes.

• The GBPUSD pair pulled back early Tuesday as markets were shifting ahead of the anticipated Bank of England meeting. The UK central bank is expected to keep interest rates steady at 5.25% but forex bros are gearing up for any surprise decisions that could stir the currency space. The sterling was seen losing about 0.3% from its valuation, on track to snap a four-day winning streak.
• Over the past few trading sessions, the UK currency has been steadily advancing against a weaker US dollar. The pound-dollar exchange rate has added about 2% in less than three weeks as it rebounded from a six-month low of $1.2300. Now, the pair must deal with looming technical resistance. The three top Simple Moving Averages (SMAs) are lurking in the near distance.
• The 200-day moving average, indicating the asset’s long-term trajectory, is sitting right at current market prices around $1.2540. If bulls manage to go over, next in line is the 50-day moving average at $1.26 and the 100-day moving average at $1.2640. Thursday’s rate-setting meeting could fuel fresh dealmaking momentum into the pair.