GBP/USD Price Analysis: Cable upholds throwback support at 1.2760 on BoE decision day

GBP/USD grinds higher past short-term key hurdle ahead of BoE Interest Rate Decision.
100-HMA prods intraday Cable buyers amid pre-BoE anxiety.
200-HMA, fortnight-old support line keep buyers hopeful amid upbeat oscillators.
Strong UK inflation bolsters hawkish BoE bets, markets expected 25 bps rate hike previously.

GBP/USD remains sidelined around 1.2770 amid early Thursday in Asia, struggling to extend the previous day’s upside break of a short-term key resistance line ahead of the all-important Bank of England (BoE) Interest Rate Decision. In doing so, the Cable pair portrays the pre-BoE anxiety while marking failure to cross the 100-Hour Moving Average but stays on the bull’s radar.

Not only the upside break of a one-week-old descending trend line, now immediate support around 1.27660, but the Pound Sterling’s successful trading beyond the 200-HMA joins the bullish MACD and RSI to also keep the GBP/USD buyers hopeful.

Additionally, the previous day’s strong UK inflation data also underpins the bullish bias about the Cable pair.

That said, a clear upside break of the 100-HMA hurdle surrounding 1.2780 becomes necessary for the GBP/USD pair to refresh the monthly high, currently around 1.2850.

In doing so, the 61.8% Fibonacci Expansion (FE) of its June 12-21 moves, near 1.2910, will be in the spotlight.

On the flip side, the GBP/USD pair’s fall past the resistance-turned-support line of 1.2760 could drag the Pound Sterling towards the 200-HMA support of 1.2695.

Following that, an ascending support line from June 05, close to 1.2655 at the latest, will act as the last defense of the Cable pair buyers.

Also read: BoE Preview: Banks expect 25 bps, door open to further hikes