BOE is set to hold both rates and asset purchases in today’s meeting. A more positive outlook from BOE is expected by the markets because of the Brexit deal and the fast vaccinations. But despite that, new virus stain and tight Covid-19 restrictions may cause BOE to decrease growth forecast for the first-quarter buy increase it for the rest of the year. But the main thing today can be negative rates talk.
BOE won’t introduce negative rates anytime soon but they are studying the possible effect for some time and in this meeting, they may decide to share that research’s results. BOE, most probably put negative rates into its toolbox for some negative scenario but in any way talks about it may push GBP to lower levels.
50-day MA, 1.3543 is a good target for downward moves in the short-term. Below that level, 1.3465 can be followed as an alternative support level. Upward move seems to be limited by 1.3733-1.3750 zone.
The main support for GBPUSD will be, long time resistance until December, the 1.3350-1.35 zone. GBPUSD couldn’t pass this zone from 2018 until December. Now, this former resistance may support medium-term bullish moves and limit the falls.