GBP/USD buyers tackle a key resistance ahead of BoE meeting

Sterling looks bearish on the four-hour chart since it is trading below the 50, and 200 EMAs, breaking primary support levels of 1.14577 and 1.13548 to the downside after some rangebound trading. The stronger dollar dragged the pair lower, with sellers aiming to load their positions at the former support of 1.13548.

Should they manage to defend this hurdle, the pound can fall to the previous level of interest at 1.12133. This level should be able to limit the negative Momentum for a moment. However, if it fails, 1.10542 may provide subsequent support.

On the other hand, with a hawkish statement from the Bank of England, there is a possibility for the pair to surpass 1.13548, putting the falling 50-EMA under threat, which is around the 1.14577 mark. Should this level be broken, GBP/USD is likely to make gains toward its descending trendline.

The short-term outlook can entirely shift bullish if we see a sustained break above this resistance zone, that can turn the attentions back on the200-EMA, lining up with the 1.17388 mark.

Despite the short-term momentum oscillators' support for the overall bearish bias, they also imply that the selling pressure is waning. The Relative Strength Index has pulled up in the selling region from oversold levels. Momentum sits below the 100-threshold, moving up from its dips. Likewise, the MACD lines with negative values are slightly shrinking to cross above the signal line.