The British Pound (GBP/USD) experienced mild trading activity today, settling around $1.24820, up slightly by 0.07%.

The currency pair’s movements are framed within a rising channel pattern visible on the 4-hour chart, indicating a cautiously bullish sentiment among traders.

Upcoming Economic Events

The market anticipates the Bank of England’s Monetary Policy Report and Summary due today at 4:00 PM. With the Official Bank Rate expected to hold steady at 5.25%, investor focus will be on the MPC’s vote split for clues on future rate directions, previously recorded at 0-2-7 from a more dovish 0-0-9.

In today’s trading session, the pivot point has been determined to be at $1.25052, which plays a crucial role in setting the directional bias. Regarding resistance levels, the immediate hurdle for prices can be found at $1.25320. Following that, a significant barrier awaits at $1.25650, with further resistance looming at $1.27080, which denotes the upper limit of the current trading range.

On the flip side, the support structure begins at $1.24666 for immediate cushioning. Should prices retreat further, additional support lies at $1.23821, and even deeper support is anchored at $1.23118, aligning closely with the lower trend line of the ascending trading channel.

Technical Indicators: The Relative Strength Index (RSI) stands at 42.25, indicating neither overbought nor oversold conditions, but leaning towards potential bearish momentum. The 50-day Exponential Moving Average (EMA) is at $1.25132, slightly above the current price, suggesting some resistance at this level.

Conclusion: Given the proximity of the price to the pivot point and the slightly bearish tilt in RSI, traders might consider a cautious approach. Selling below $1.25052 could be a strategic move, reflecting a potential shift towards the support levels if bearish pressures intensify.

Conversely, a break above this pivot could invalidate the bearish outlook and push towards higher resistance levels, influenced by broader market sentiment and upcoming economic releases.