GBP/USD hovers around 1.3300, repositioning ahead of BOE?

The GBP/USD pair is struggling to sustain the recovery above 1.33 handle, as the pound sees a round of profit-taking heading into the BOE interest rates decision.

GBP/USD finds support above 5-DMA at 1.3274

Currently, GBP/USD trades -0.26% lower at 1.3295, unable to take on the recovery beyond 1.3310 levels. The cable moved-off lows, but remains suppressed near 1.33 handle as markets reposition themselves before the announcement of the much-awaited BOE monetary policy decision accompanied by the quarterly inflation report (QIR).

Additionally, persistent broad based US dollar strength also continues to weigh down on the GBP/USD pair. The US dollar index rises +0.16% and hovers near session highs reached at 95.70 levels.

All eyes now remain on the BOE verdict, with most major analysts expecting the UK’s central bank to lower the key rate to a record low of 0.25% after leaving it unchanged at 0.50% for seven straight years.

Further, markets will also eagerly await comments from BOE Chief Mark Carney as he will publish the inflation report, especially after he explicitly mentioned that more easing remains on the cards in wake of the Brexit fallout and its downside risks to the UK economy.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3373 (3-week highs), above which 1.3400 (round number) would be tested. On the flip side, support is seen at 1.3274 (5-DMA) below that at 1.3226/11 (10 & 20-DMA).