GBPUSD holds below 1.5200 before the release of Official Bank Rate later in the day. 1.5200 remains as a resistance for the pair and acts as the neckline for the inverse head and shoulder formation. Should candles break above 1.5200 later with the release of the Official Bank Rate and MPC Rate Statement, we can expect candles to head towards 1.5500 by the end of this week.
Candles have broken above the downward sloping trend line but has since then fallen below and now lies in the range of 1.5000 and 1.5200. However, a higher high is formed, indicating the possible start of an uptrend. With the release of news later in the day, we can expect high volatility for the pair.
Focusing on H1 chart, the pair was observed to exhaust at Fibonacci Expansion 200.0% at 1.5249 before it retraces back below 1.5200. Bullish momentum of the pair remains high and counter-trending is strongly cautioned.