GBPUSD holds onto recovery moves from 16-month low post FOMC showdown. In doing so, the cable pair remains firmer above a convergence of the 10-DMA and a three-week-long descending trend line, around 1.3120 by the press time. Given the RSI rebound supporting the latest run-up of the pair, it will attract more bids on successfully crossing December 2021 bottom surrounding 1.3160. Following that, February’s bottom near 1.3275 and January’s low of 1.3357 will gain the buyer’s attention before the 100-DMA level around 1.3420 challenges the upside.
Alternatively, a downside break of the 1.3120 resistance-turned-support figure will recall the GBPUSD bears. During the quote’s weakness past 1.3120, the 1.3000 psychological magnet will act as an intermediate halt towards the fall targeting a downward sloping trend line from April 2021, close to 1.2950. In a case where the cable bears dominate below 1.2950, 78.6% Fibonacci Expansion (FE) of May 2021 to January 2022 moves, near 1.2885, and November 2021 low of 1.2853 should be in focus for the bears.
Overall, a clear upside break of the short-term key hurdle teases the buyers but it would be ideal to wait for the Bank of England (BOE) monetary policy decision before taking any entries