GBP/USD flirts with 7-week tops, BOE in focus

The cable is seen clinging to post-FOMC gains and appears to lack further upside bias, as the US dollar selling stalls amid a minor-recovery in the treasury yields.

The GBP/USD pair rallied to seven-week highs just shy of 1.27 barrier, after the greenback slumped across the board on an absolutely powder-dry Fed event, with the committee likely to remain in a wait-and-see mode until March.

Focus now shifts towards the BOE policy decision due later today, which will be accompanied by the quarterly inflation report and minutes of the meeting. While the UK construction PMI release will also draw some attention in the European session ahead.

BOE QIR Preview – Deutsche Bank

GBP/USD Levels to consider            

At 1.2675, the upside barriers are lined up at 1.2686 (7-week high), 1.2747 (Nov 27 high) and 1.2776 (Dec 4 high). While supports are aligned at 1.2629 (daily pivot) and 1.2600 (zero figure) and below that at 1.2583 (10-DMA).