GBP/USD Stuck In Asymmetric Triangle – Breakout awaited on BOE Rate Decision

The GBP/USD is the most highlighted currency pair today as investors are anxiously awaiting the BOE monetary policy decision. As discussed earlier in Fxleaders Economic Event’s Outlook, the BOE is widely expected to hike the interest rate from 0.50% to 0.75%. So, we may see dramatic fluctuations not only in the Cable but also in GBP/JPY and EUR/GBP.

How to Trade GBP/USD on BOE Monetary Policy?

On the 2 hour timeframe, the GBP/USD has formed an asymmetric triangle pattern. Newbies, these patterns are mostly formed when investors are not able to decide which way to go. The pattern is extending a solid support to GBP/USD at $1.3090 along with a resistance near $1.3135.

The 50 and 100 periods moving averages are also extending resistance near $1.3160.

Potential Targets

• BOE hikes rate to 0.75% – In response, the GBP/USD can spike to $1.3170 and $1.3220. Near these levels, the chances of bearish reversal or retracement will be very high.
• BOE keeps the rate on hold to 0.50% – The GBP/USD can take an initial dip to $1.3025 and $1.2968.

GBP/USD – Key Trading Levels

Support Resistance
1.3075 1.3185
1.3041 1.3219
1.2986 1.3274
Key Trading Level: 1.313

GBP/USD – Trade Idea

Investors are advised to keep a close eye on $1.3090, below this, the GBP/USD can give us a selling opportunity to target $1.3025 and $1.2965. While, above this (1.3090), the pair can stay bullish until $1.3170 and $1.3220. Good luck!