200-SMA set to test GBPUSD pullback on “Super Thursday”

GBPUSD refreshes a two-week low on the key “Super Thursday” dominated by the Bank of England’s (BOE) quarterly moves. With the increased hopes of BOE’s hawkish comments, based on the UK’s vaccinations, GBPUSD may bounce off the key SMA support. However, the weekly resistance line near 1.3650 could restrict further recovery moves before recalling the 1.3700 threshold on the chart. In a case where BOE Governor Andrew Bailey sounds too optimistic and rejects negative rate hopes, a one-month-old ascending resistance line near 1.3775-80 and the 1.3800 round-figure should gain the market’s attention.

On the contrary, any disappointment from the “Old Lady”, which is highly feared, can challenge the yearly low near 1.3450. Should the BOE-led disappointment gains support from the USD’s strong run-up, mainly due to its safe-haven demand, GBPUSD might not hesitate to challenge December’s low 1.3133. During the fall, 1.3430, 1.3300 and 1.3180 can act as buffers. Overall, GBPUSD trades near the key support on a very important day and hence cable traders should remain cautious ahead of the event.