GBP/USD Forecast: At Risk Of Extending Its Decline On A Break Below The 1.2820 Support

GBP/USD Current Price: 1.2850

• UK PM Boris Johnson to “unleash the UK’s potential” if Tories win elections.
• The Bank of England will likely keep the monetary policy unchanged this Thursday.
• GBP/USD at risk of extending its decline on a break below the 1.2820 support.

The GBP/USD pair has settled in the 1.2840/50 price zone, having spent the this Wednesday at the lower end of its weekly range, directionless. The UK didn’t release macroeconomic data, and in the political front, little changed. Tories continue to lead polls, while PM Boris Johnson said that if they win the election, he would put an end to Brexit parliamentary paralysis and “unleash the country’s potential.”

Market players are now waiting for the Bank of England, which will unveil its latest monetary policy decision this Thursday. Given Brexit in the way, the most likely scenario is that policymakers will maintain the status quo and the meeting a non-event. However, it is a central bank meeting and has the chance of triggering volatile moves.

GBP/USD Short-Term Technical Outlook

The short-term picture indicates that the GBP/USD pair is at risk of falling further, although it would need to break below 1.2820, a Fibonacci support, to confirm a steeper downward move. In the 4 hours chart, a bearish 20 SMA capped advances, while the pair is currently below its 100 SMA. Technical indicators, in the meantime, remain within negative levels, with uneven bearish strength yet anyway heading lower.

Image Sourced from Pixabay