Technical Analysis: GBPUSD rebound seeks validation on BOE Super Thursday
GBPUSD recovers from monthly bottom as the cable traders await Bank of England’s (BOE) Quarterly Inflation Report (QIR). Given the bullish hopes from the “Old Lady,” the quote may keep latest rebound. However, it needs to provide a daily closing above an ascending trend line from July 20, near 1.3630 to keep the buyers hopeful. Also challenging the short-term upside moves is a downward sloping resistance line from September 15, near 1.3680. Above all, the pair bulls may struggle to retake controls unless crossing the 100-DMA level of 1.4000 on a daily closing basis.
Meanwhile, a daily closing below 1.3630 will direct GBPUSD sellers towards the 1.3600 round figure and July’s bottom near 1.3570. Though, any further weakness will be challenged by a descending support line from April, surrounding the 1.3500 threshold. It’s worth noting that the oversold RSI conditions raise concern over the pair’s additional declines and so does a jump in the UK inflation expectations that helps BOE hawks to keep the driver’s seat.