GBPUSD trades at 1.2704 after an impressive rally that started yesterday and ahead of Bank of England interest rate decision later today. Pound got a boost after FED left interest rates unchanged as widely expected by markets but changed its language to more dovish amid growing global trade fears. Later today Bank of England expected to leave its interest rate unchanged at 0.75%.
Sterling broke above the 1.27 mark approaching the monthly high, and returned into the well established trading range between 1.2680 and 1.2740 that was active for over two weeks. Bulls got the short term control as the pair broke above all the major hourly moving averages. We wrote in our last GBPUSD update that the pair is oversold and a rebound looks possible. Support for the pair stands at 1.2643 the 200 hours moving average, while if broken might accelerate the slide further towards 1.2590 and the 100 hour moving average. On the upside if the pair manages today to close above 1.27 might continue with an attempt to 1.28 and then to 1.2827 where the 50 day moving average cross.