GBP/USD reverses early losses

• GBP/USD bounces from lows, on track to post first gain in three days
• Investors await BoE monetary policy decision

GBP/USD has managed to recover more than a full cent during the New York session, in tandem with a weaker dollar across the board. 

After hitting a 2 ½-week low of 1.3835, the pair staged a bounce that has extended to a session peak of 1.3979, still shy of its daily high of 1.3998. At time of writing, the pair is trading at the 1.3975 area, up 0.16%, on track to post its first positive close in three days.

Despite these last days’ pullback, Cable continues to trade fairly close to its 1 ½-year peak of 1.4344 scored late January.

BoE expected to keep policy unchanged on Thursday 

On the data front, investors attention will be on the BoE meeting on Thursday, where consensus expects the bank to keep the refi rate unchanged at 0.50%.

GBP/USD levels to watch

In terms of technical levels, next supports are seen 1.3835 (intraday low), 1.3800 (psychological level) and 1.3755 (Jan 17 low) . On the flip side, resistances could be found at 1.3998/1.4000 (intraday high/psychological level), 1.4121 (10-day SMA) and 1.4149 (Feb 5 high).