Technical Analysis: GBPUSD stays range-bound, BOE Super Thursday in focus

Technical Analysis: GBPUSD stays range-bound, BOE Super Thursday in focus

GBPUSD seesaws around 1.3900 as cable traders prepare for the key day. Not only the Bank of England's (BOE) Quarterly Inflation Report (QIR) but local elections in England, Wales and Scotland also highlight the importance of Thursday. Ahead of the events, GBPUSD stays above 100-day SMA and an upward sloping trend line from June 2020, respectively around 1.3770 and 1.3710. Also likely to test the pair sellers could be the late April's swing low near 1.3830. it's worth noting that a daily closing below 1.3710 will need validation from the 1.3700 round-figure, a break of which can make the GBPUSD prices vulnerable to drop towards the September 2020 peak near 1.3480.

On the upside, a two-month-old horizontal area surrounding 1.4000–4010 could restrict the pair’s short-term advances. However, any further run-up may have fewer hurdles, namely around 1.4070 and 1.4145-50 before challenging the yearly top close to 1.4240. Overall, GBPUSD is likely to keep the uptrend as BOE Governor Andrew Bailey may praise the UK’s economic recovery from the pandemic. Though, any disappointment will have larger repercussions.

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