GBP/USD back to square one

GBP/USD has returned to the starting point after the bounce from fresh 2-week lows was capped by the 1.4480 zone.

Cable hit its lowest level since Apr 22 at 1.4373 during the European session, but managed to recover ground afterwards. However, with the upside also limited, it was confined to a range. At time of writing, GBP/USD is trading at 1.4430, virtually unchanged on the day.

The week started on a quiet note, despite last week’s US employment report, with GBP/USD consolidating in a slightly lower range ahead of the Bank of England policy decision due on Thursday. The BoE is expected to leave rates and the QE program unchanged.

GBP/USD technical levels

In terms of technical levels, next supports are seen at 1.4373 (May 9 low/100-day SMA), 1.4313/07 (Apr 22 low/50-day SMA) and 1.4270 (Apr 19 low). On the upside, immediate resistances could be found at 1.4478 (May 9 high), 1.4528 (May 5 high), 1.4570 (May 4 high) and not much until 1.4695 (May 2 high).