GBP/USD Is Neutral In The Near-Term, Unlikely To Move Far Away Ahead Of BOE

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GBP/USD Current price: 1.3915

• The pair fluctuated accordingly to the market’s sentiment, held between familiar levels.
• The UK macroeconomic calendar will remain scarce until BOE’s Super Thursday.
• GBP/USD is neutral in the near-term, unlikely to move far away ahead of BOE.

The GBP/USD pair trades a handful of pips above the 1.3900 level, posting a modest intraday advance. The pair seesawed between gains and losses, fluctuating alongside the market’s sentiment but holding on to a limited intraday range amid the absence of a valid catalyst. Market participants await the Bank of England monetary policy announcement, scheduled for August 5. The central bank may warn about the risk of tightening too early, somehow denting demand for the pound in advance.

Data-wise, the UK macroeconomic calendar had nothing to offer on Tuesday, but over the next 24 hours, Markit will publish the final reading of the country’s July Services PMI, previously estimated at 57.8.

GBP/USD short-term technical outlook

The near-term picture is neutral for GBP/USD. The 4-hour chart shows that, despite an intraday advance, the pair has been unable to settle above a mildly bearish 20 SMA. Technical indicators hover around their midlines with divergent directional strength, indicating the lack of directional momentum. The pair would need to firm up above 1.3940, the immediate resistance level, to be able to extend its gains.

Support levels: 1.3865 1.3820 1.3770

Resistance levels: 1.3940 1.3985 1.3420

Image by Julius Silver from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.