After cheering the Fed-led run-up the previous day, GBPUSD bulls catch a breather below a three-week-old resistance line. However, a confluence of 50-day SMA and yearly support line, coupled with upbeat oscillators signals the pair’s further upside past-1.3990 immediate hurdle. Additionally, wide expectations of the BOE’s disappointment contrast Governor Andrew Bailey’s ability to surprise the market, which in turn adds strength to the bullish bias. Though, a clear break of the 1.4000 threshold will become necessary for the GBPUSD buyers before eyeing the previous month’s top, also the highest since April 2018, around 1.4240.
Alternatively, downside moves will not only need to break the 1.3810 support confluence but also an ascending trend line from September 23, currently around 1.3675, to recall the GBPUSD bears. Following that, lows marked during February and January, respectively near 1.3560 and 1.3450, will be the key to watch. Hence, GBPUSD bulls can ignore losses unless breaking the 1.3675 level, which requires an extremely dovish BOE that is out of course for now.