The Bank of England monetary policy decision is due to be released today at 1200GMT. Governor Bailey’s press conference will follow at 1230GMT. The consensus is that rates will be left unchanged at 0.1%, however a change in BoE tone would move the pound. If the BoE is surprisingly hawkish it’d be expected to be bullish for the GBP.

GBPUSD 1D Chart

On the daily chart we are seeing a potential head and shoulder pattern starting to take place. Yesterday’s bullish engulfing candle is a positive sign for bulls, and the RSI is currently mixed.

GBP/USD 1H Chart

After bouncing from support around the 50% fibonacci retracement level price has bounced, breaking above the short term bearish structure. Price is now eyeing upside into the 1.3740 level around the fibo 21.4% level, which has now become a potential resistance.