GBP/USD still unable to break above 1.2700, BoE eyed

The Sterling keeps the firm note on Thursday, with GBP/USD navigating the upper end of the recent range near the 1.2700 handle.

GBP/USD now looks to the BoE

Spot is trading in consonance with the rest of the riskier assets amidst a generalized selling mood around the buck, particularly after the FOMC left no room for surprises at yesterday’s meeting.

The pair has managed to extend the rebound to fresh 2-month tops in the boundaries of 1.2700 the figure during this week, gaining 7 cents since lows near 1.1980 seen in mid-January.

The solid performance of GBP remains bolstered by UK fundamentals but mainly by alleviated concerns over the likeliness of a painful exit from the European Union, all after the conciliatory tone from PM T.May at her latest speech and the Supreme Court ruling on Article 50.

Ahead in the session, the BoE is expected to keep its monetary stance unchanged at its meeting, while the Quarterly Inflation Report should revise its inflation forecasts higher.

GBP/USD levels to consider

As of writing the pair is gaining 0.07% at 1.2669 facing the next hurdle at 1.2706 (high Feb.2) followed by 1.2729 (high Dec.13 2015) and finally 1.2776 (high Dec.6 2015). On the other hand, a breakdown of 1.2542 (low Feb.1) would open the door to 1.2473 (100-day sma) and finally 1.2410 (low Jan.31).