GBPUSD remains pressured within a six-week-old descending triangle as market players await the Bank of England’s (BoE) monetary policy announcements. In doing so, the Cable pair justifies the US Federal Reserve’s (Fed) hawkish halt, as well as expectations suggesting the BoE’s rate cut in 2024. It’s worth noting, however, that the 50-SMA level of 1.2670 and an ascending support line from late November, close to 1.2650 at the latest, offer intermediate supports to the Cable pair within the aforementioned triangle, currently between 1.2600 and 1.2750. Apart from the triangle in play, the 200-SMA surrounding 1.2560 acts as an extra filter toward the south.
Meanwhile, an upside clearance of the stated triangle’s top line, near 1.2750 by the press time, will quickly propel the Pound Sterling toward the previous monthly high of around 1.2830. Following that, the late July peak of 1.3000 will act as the final defense of the GBPUSD bears, a break that won’t hesitate to fuel the prices toward the year 2023 high of near 1.3145.
Overall, the BoE is likely to keep the interest rate unchanged but the tone of the British central bank isn’t expected to maintain the optimism like the US Federal Reserve (Fed), which in turn will weigh on the GBPUSD pair unless witnessing a surprise.