GBP/USD stable at 1.3250, focus remains on Thursday’s key BOE decision

After failing to sustain its strength above 1.3300 handle and a subsequent retreat to 1.3220, the GBP/USD pair now seems have stabilized around 1.3260-65 region. 

After yesterday's sharp up-surge, led by easing political uncertainty in the UK, the remained in consolidation mode as markets now seems to adopt a wait and watch stance and await for fresh impetus from Bank of England. 

BoE's MPC is scheduled to meet on Thursday for the first time since the historic vote to end Britain's membership with the European Union. Majority of the market participants anticipate the central bank to cut its benchmark interest rates for the first time since 2009 and hint towards further monetary easing at its meeting in August, which now seems to limit any further recovery for the GBP/USD major.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The positive tone persists in the pair, given that in the 4 hours chart, the price holds within its highs and above a bullish 20 SMA, whilst the technical indicators consolidate well above their mid-lines, with no signs of turning south."

"Additionally, there's a strong static resistance around 1.3350, this month high, and seems unlikely the price will run beyond it ahead of the critical event. If it does, however, there's scope to test 1.3420, en route to 1.3460."

"The mentioned daily low is the immediate support, with a downward extension below it opening doors for a decline down to 1.3150."