The Bank of England (BOE) is expected to raise its rate from 0.5% to 0.75% later today in a greatly anticipated move by traders and analysts.
This is a Super Thursday meeting with a press conference to follow and traders will be attempting to engage with the market giving a temporary boost to liquidity in these summer markets.
The GBPUSD chart shows that the pair is maintaining a down trend. The blue falling trend line had a false breakout higher in July but this was quickly reversed. Price is currently at 1.3085 with support coming in at 1.3040 and 1.3000. The low was seen at 1.2957 in July and a reaction to the hike today can see that level retested. A decline to 1.2800 may occur with support at 1.2774.
Resistance comes in around 1.3200 where the falling trend line has passed through in recent days. A break higher from here needs to retest the area as support otherwise the move may result in another false break out. A short squeeze higher would look to take as many weak stop loss positions as possible with 1.3280 and 1.3360 keep levels for any retracement higher. A break above 1.3470 can see a move to 1.3600 and even 1.3658.