4 min readAs the market braces for today’s FOMC decision, GBP/USD remains in focus with an added layer of importance this week — the upcoming Bank of England interest rate decision. These two central bank events could set the tone for GBP/USD, influencing both short-term volatility and broader trend direction. Traders should be prepared for potential sharp moves as policy expectations shift.
From a technical standpoint, GBP/USD continues to display a strong uptrend, forming consistent higher highs and higher lows. However, price action has now approached a significant high time frame resistance zone centred around the 1.34 area. Currently, the pair is trading within a range that could potentially represent a distribution phase at resistance.
The range lows are situated at 1.323 and the range highs at 1.344, creating clearly defined levels that traders can use for risk management and trade confirmation. It is also worth noting that the daily 20 EMA, marked in purple, sits just below the current price action and aligns with the range lows, adding technical significance to this support area.
Given the likely increase in volatility surrounding today’s FOMC and the upcoming Bank of England decision, the range lows and range highs will be the primary levels to monitor. A breakdown below the range lows could expose the 1.31 support level, followed by the next major support at 1.30. On the flip side, a break above the range highs could trigger a continuation of the bullish trend, with the first initial resistance sitting just above at 1.35.
With multiple catalysts in play this week, GBP/USD traders should stay alert for key breakouts or breakdowns from this range structure.
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