GBP/USD Price Forecast: A Return to $1.21 in the Hands of the BoE

It’s a particularly quiet day ahead for the Pound, with no stats to consider on the UK economic calendar.

While there are no stats to consider, Bank of England chatter will draw interest.

Later this morning, Bank of England Governor Andrew Bailey will be in focus, delivering testimony to the Treasury Committee on the BoE Financial Stability Reports at 1515 BST.

Last week, BoE Monetary Policy Committee members talked of a willingness to deliver a more aggressive rate path to bring inflation to target. With little else for the markets to consider, the testimony will likely draw plenty of attention.

GBP/USD Price Action

At the time of writing, the Pound was down 0.49% to $1.19690.

This morning, the Pound rose to an early high of $1.20365 before falling to a low of $1.19643.

The Pound left the Major Support and Resistance Levels untested early on.

Technical Indicators

A move through the $1.2001 pivot would bring the First Major Resistance Level (R1) at $1.2082 and resistance at $1.21 into play.

A pickup in risk sentiment would support a breakout from the Friday high of $1.20561.

In the event of an extended rally, the GBP/USD pair would test the Second Major Resistance Level (R2) at $1.2138 and resistance at $1.2150.

The Third Major Resistance Level (R3) sits at $1.2274.

Failure to move through the pivot would bring the First Major Support Level (S1) at $1.1946 into play.

In case of an extended sell-off, the GBP/USD pair could test the Second Major Support Level (S2) at $1.1865 and support at $1.1850.

The Third Major Support Level (S3) sits at $1.1728.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal.

At the time of writing, the Pound sat below 50-day EMA, currently at $1.20479.

The 50-day EMA slipped back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA: GBP/USD negative.

A move through the 50-day EMA and R1 would support a run at $1.21 levels to test R2.

The US Session

There are no material stats for the markets to consider, leaving risk appetite to provide the GBP/USD pair with direction.