GBP/USD down little, around mid-1.3500s ahead of BoE’s Carney

The GBP/USD pair now seems to have entered a consolidation and was seen oscillating within a narrow trading band around mid-1.3500s. 

The pair refreshed yearly tops during early European session on Monday but once again met with some fresh supply near the 1.3615-20 region and subsequently touched a session low level of 1.3533 in the past hour, albeit recovered few pips thereafter. 

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Despite of the two-way moves, the pair lacked any firm directional bias amid subdued US Dollar price-action and as traders seemed to await for BoE Governor Mark Carney's scheduled speech, due later today.

With a possible November BoE rate hike action nearly priced in by the market, traders seemed inclined to take some profits off the table, especially after the hawkish BoE minutes-led strong upsurge of over 450-pips in just two-trading session.

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Moreover, investors also seemed reluctant to place aggressive bets amid thin macroeconomic docket and ahead of the next big event risk - FOMC decision, due to be announced during NY trading session on Wednesday.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "according to the 4 hours chart, the pair remains far above a bullish 20 SMA, while technical indicators have partially corrected overbought conditions, but are currently losing their downward slopes, indicating that there's limited selling interest around the pair. The immediate support comes at 1.3520, with a break below it supporting a downward corrective movement, first towards 1.3480/90, and later towards the 1.3440 region. Resistances come at 1.3565, with gains beyond it opening doors for a retest of the daily high at 1.3618."