GBP/USD: Corrective mode intact near 1.2270 ahead of BOE

The GBP/USD pair appears to have found fresh bids near 1.2260 over the last hours, now making attempts to regain 1.23 handle.

The spot failed to sustain neutral FOMC decision inspired gains above 1.23 handle, and reversed a part of it in Asia, in response to a minor-corrective rally seen in the US dollar against its main peers, as the treasury yields stalled its downslide.

Heading into early Europe, cable keeps losses amid cautious tone prevalent in the markets, as investors turn their attention towards the BOE monetary policy decision.

The BOE is widely expected to keep its policy steady, in wake of softer retail sales and wages. Meanwhile, latest developments surrounding the Article 50 trigger will also keep the BOE on the divided over the outlook on interest rates going forward.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted, “ The 4 hours chart shows that the price bounced multiple times intraday from a bullish 20 SMA, whilst technical indicators regained the upside after testing their mid-lines, heading now north at fresh 1-week highs. The pair has a critical resistance at 1.2345, the 50% retracement of January's rally and February's low. If the price manages to break above it, the rally can extend up to 1.2425, the next Fibonacci resistance. Still, Brexit jitters weigh, and may trigger a sudden reversal on an approach to any of the mentioned resistances.”