GBP/USD dips to 1.3315 ahead of key event risk, BOE meeting

Heading into the BOE monetary policy decision, the GBP/USD pair erased early tepid gains to 1.3345 and has now dipped marginally into negative territory but has held above 1.3300 handle. 

During early Asian session the pair ticked higher to 1.3345 but failed to build on to its recovery momentum from yesterday's low near 1.3280 level as traders seemed reluctant to carry big positions ahead of the key event risk later during European session. 

After disappointing in July, the central bank is widely expected to announce a 25 bps rate-cut and bring down its benchmark rates to a new record low level. What would of key interest for the markets is the central bank's tone in quarterly inflation report, which if sounds dovish would increase prospects of further easing and eventually drive the GBP/USD pair lower.

Technical levels to watch

On the immediate downside, 1.3300 round figure mark, followed by 1.3280 (yesterday's low), seem to act as immediate support, below which the pair seems to dip towards 1.3220 horizontal support. On the flip side, 1.3350 area remains immediate resistance to watch for, which if cleared seems to boost the pair immediately towards 1.3400 round figure mark before extending its near-term upward trajectory.