The Great Britain Pound (GBP) extended downside movement against the US Dollar (USD) on Monday, dragging the price of GBPUSD to less than even 1.5450 ahead of some key economic events. The technical bias however still remains bearish due to a lower low in the recent downside dip on daily chart.
Technical Analysis
As of this writing, the pair is being traded near 1.5412. A hurdle may be noted around 1.5521, the high of the last week ahead of 1.5551, the confluence of psychological number as well as high of the last major rally as demonstrated in the following daily chart.
On the downside, the pair is likely to find a support near 1.5314, the 76.4% fib level ahead of 1.5056, the 50% fib level. The technical bias will remain bearish as long as the 1.5551 resistance area is intact. A valid rejection in the form of a bearish pin bar or bearish engulfing candle could incite huge selling pressure, opening doors for the 1.5000 floor.
Britain’s Monetary Policy
The Bank of England (BoE) is due to announce its monetary policy today during the early hours of London session. According to the median projection of analysts, the central bank is expected to keep the asset purchase program unchanged at 375 GBP while the benchmark interest rate is also likely to be unchanged at 0.5%. Any unexpected decision by the BoE may cause sharp volatility in the price of cable as well as all other GBP pairs.
Trade Idea
Considering the overall technical and fundamental analysis, selling the pair around current levels could be a good option if we get a valid rejection from the 1.5550 resistance area as described above.
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