GBPUSD remains in sideways mode after Tuesday’s Doji; BoE eyed for fresh signals
Cable holds within tight range in early Wednesday after strong downside rejection at 1.3835 on Tuesday and daily action ending in long-tailed Doji, signaling indecision.
Strong fall in previous two days shows initial signs of stall, but recovery attempts were so far limited and capped under 1.40 barrier (former strong support – Fibo 38.2% of 1.3457/1.4344 upleg) which marks the trigger for stronger recovery.
Near-term price action may hold in extended sideways mode, awaiting BoE rate decision and Inflation report on Thursday which could be a catalyst for fresh action.
Mixed daily studies support the notion, with RSI moving sideways in neutrality territory and momentum studies weakening, while daily MA’s are I mixed mode.
Clear break below cracked 1.3900 support (50% retracement of 1.3457/1.4344 / daily Kijun-sen) would be initial bearish signal for renewed attack at 1.3796 (Fibo 61.8%).
Conversely, lift above 1.40 barrier would signal further recovery which needs to regain 10SMA (1.4092) to neutralize existing downside risk.
Res: 1.4000; 1.4056; 1.4092; 1.4109
Sup: 1.3918; 1.3901; 1.3835; 1.3796