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GBP/USD bullish flag hints at possible bullish breakout

The GBP/USD post-BOE decision rally fizzled-out in the overnight session. The GBPUSD is trading at 1.3678, which is a few pips below yesterday’s high of 1.3700.

GBP/USD News: The biggest news this week was the BOE decision made yesterday. The bank left interest rates unchanged as most analysts were expecting. It also downgraded its growth forecast for the year but suggested that negative interest rates will not come out any time soon. However, the bank also asked banks to start preparing for subzero rates if the economy continues to contract. 

The next big mover for the GBP/USD will be the US nonfarm payrolls data that will come out at 13:30 GMT. Analysts expect the data to show that the economy added about 50,000 jobs while the unemployment rate remained at 6.7%.

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GBP/USD technical outlook 

The GBPUSD price soared yesterday after the BOE decision. On the hourly chart, we see that the pair has started to form a bullish flag pattern that is shown in blue. Th uptrend is also supported by the 15-day exponential moving average. Therefore, the pair will likely rebound higher as bulls target the next resistance at 1.3750. However, if it drops below the lower side of the flag at 1.3650, this thesis will be invalidated.

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GBPUSD technical chart

gbp/usd

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