GBPUSD reversed from the fresh yearly highs of 1.2675 and retreated back to below 1.2570 ahead of the Bank of England interest rate decision. The central bank is expected to raise the bank rate by 25 basis points to 4.5% today. Interest rate decision to be announced at 12:00 GMT, with updated economic forecasts along with Governor Bailey’s press conference. Investors will also be looking for signs that the hiking cycle is nearing its conclusion.
Technically, the overall momentum remains mixed after the king dollar makes a modest recovery. However, the currency pair is expected to regain upside momentum after the BOE decision. On the downside, 1.2560 remains the immediate support level, followed by 1.2540. Further selling pressure will intensify only if the pair break below 1.2500 levels. On the upper side, if the pair break above 1.2610 it would open doors towards the previous session resistance area of 1.2675 and above that 12690/1.27 is next. The expected trading range for GBPUSD today is between 1.2500 support and 1.2690 resistance.
