GBPUSD stays inside monthly triangle ahead of BOE MPR Hearings

GBPUSD bears flex muscles inside the one-month-old symmetrical triangle, recently easing from the resistance. Although downbeat RSI and MACD signals keep sellers hopeful of breaking the stated triangle’s support line, around 1.3550 at the latest, a convergence of the 100-DMA and the 50-DMA highlights the 1.3500 threshold as strong support. Even if the cable pair drop below the 1.3500 mark, the following south-run needs validation from an upward sloping support line from late December, near 1.3780 by the press time, a break of which will give controls to bears.

On the contrary, hawkish BOE Monetary Policy Report (MPR) Hearings will again challenge the triangle’s resistance line, close to 1.3635. Following that, the 200-DMA and a descending resistance line from October 2021, respectively around 1.3680 and 1.3700, could test the bulls. During the quote’s run-up past-1.3700, January’s peak of 1.3748 may act as the last defense for the pair sellers ahead of unleashing the bulls.

Overall, GBPUSD grinds inside the monthly triangle ahead of a likely hawkish event.