GBP / USD Firm Above 1.3900, Faces Resistance Near 1.3950

  • The pound rises slightly against the dollar, remains above 1.3900.
  • Week marked by meetings of the BoE and the Fed.

GBP / USD managed to sustain above 1.3900 as after hitting a low for the day at 1.3898 it quickly returned above and bounced, rising to test the zone of the highs of the day around 1.3945. It operates at 1.3925 / 30, in the preview of the American session, showing a slight rise for the day.

The week of central banks begins

The pound is rising against the euro on Monday as well. It is slightly favored. This week will be the meeting of the Bank of England, which will announce the decisions on Thursday. Governor Bailey in an interview Monday was optimistic about the recovery of the economy. He indicated that the central bank watches interest rates closely and that the recent rise in yields is consistent with changes in the economic outlook.

The Federal Reserve will announce its decisions on Wednesday. No changes are expected in the monetary policies of either of the two central banks. The macroeconomic statements and projections are expected to have an impact on the market. On Monday, the economic calendar shows the Empire manufacturing report as relevant.

Short-term outlook

From a technical point of view, GBP / USD has a slight bullish bias on Monday, facing significant resistance at 1.3950. You will need to move past that level to enable an extension targeting 1.3965. Then attention will shift to 1.3980 and Friday’s high at 1.4000 / 05. In the opposite direction, losing 1.3920 could go to test the lows of the day and 1.3900. A confirmation below would point to more weakness ahead.

Technical levels

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