The GBP/USD pair is trading in the sideways manner around 1.42 handle as investors prefer to be on the sidelines ahead of ECB rate decision due later today.
Will he or Won’t he?
The question in everybody’s mind is whether ECB President Draghi over deliver in terms of fresh monetary easing or disappoint with just a 10 basis point rate cut, which has been priced-in well in advance.
In either of the cases, the EUR/GBP cross could witness sharp moves that shall influence GBP/USD pair. Furthermore, ECB’s decision could also influence expectations surrounding BOE’s next move.
GBP/USD Technical Levels
The immediate hurdle is seen at 1.4241 (previous day’s high), above which the spot could test 1.4284 (Mar 7 high). On the other hand, a break below 1.4178 (23.6% of 1.3835-1.4284) would open doors for a slide to 1.4154 (38.2% of 1.4669-1.3835).
(Market News Provided by FXstreet)