GBPUSD trading decelerates as markets await the Bank of England’s policy decision on Thursday

Cable remains in a narrow trading range on Tuesday as traders await new signals from this week’s key economic event for sterling: the Bank of England’s monetary policy meeting on Thursday.

Today’s data, including UK construction PMI exceeding expectations and a rise in house prices, have contributed to a positive short-term bias while the price remains above the 200-day moving average (1.2545).

Consistent daily closes above the 200-day moving average and the breached Fibonacci level at 1.2552 (61.8% of the 1.2709/1.2299 range) support a bullish technical outlook and partially offset recent pressure from strong upward rejections and a bull trap observed on Friday.

The pair is likely to remain quiet until the Bank of England’s decision on Thursday, which could offer strong signals for near-term direction.

The upside trigger is located at 1.2612 (Fibonacci 76.4% / 55-day moving average), and a firm break could suggest a bullish continuation from the 1.2299 low on April 22.

Conversely, a loss of initial support at 1.2545 (200-day moving average) and 1.2524 (10-day moving average) could weaken the near-term outlook and risk further declines towards lower pivot points at 1.2504 (broken Fibonacci 38.2%) and 1.2486 (20-day moving average).

Res: 1.2538; 1.2612; 1.2641; 1.2709

Sup: 1.2545; 1.2504; 1.2486; 1.2405