Forex: GBP/USD continues to consolidate ahead BOE Rate Decision

FXstreet.com (Barcelona) - The Sterling finished the day up 41 pips at 1.5541. It will be upcoming session out of London, with Industrial Production and Manufacturing Production due out at 8:30GMT. However, volatility may really start to pick up when the BOE Interest Rate decision is released a bit later at 11:00GMT.

According to the analyst team at BabyPips.com, “The U.K. was also able to chalk up higher than expected PMI figures for the construction, manufacturing, and services sectors. Medium-tier reports, such as housing-related data (Nationwide HPI and BBA mortgage approvals), have also printed good results.

They went on to add, “With that, it is very likely that the BOE will keep monetary policy unchanged for now, as the British economy has been showing signs of resilience amid ongoing austerity measures. I wouldn't be surprised if BOE Governor King's statement turns out to be a little more upbeat this time around, as he could give a more hopeful economic outlook.”

From a technical perspective, the FXStreet.com Trend Index remains slightly bearish on the 1 hour chart, while the OB/OS Index reads Neutral. Initial resistance remains at 1.5620 (resistance the past four days), followed by 1.5660 (upper channel resistance). First support sits at 1.5470 (previous day low), followed by 1.540 (the 20dma).