GBP/USD: Fluctuations in the well-defined range seen as technical trading opportunities

GBP/USD has started the new week in a calm manner. According to FXStreet’s Eren Sengezer, technical fluctuations could be seen as trading opportunities ahead of key events.

Technical trading opportunities ahead of central bank meetings

“Ahead of this week's highly-anticipated central bank meetings, the pair's fluctuations in the well-defined range could be seen as technical trading opportunities.”

“GBP/USD faces first resistance at 1.26 (psychological level). In case this level turns into support, the next recovery targets are located at 1.2660 (Fibonacci 38.2% retracement) and 1.27 (psychological level, 50-period SMA on the four-hour chart).”

“On the downside, 1.2530 (20-period SMA) aligns as interim support ahead of 1.25 (psychological level). A daily close below the latter could be seen as a bearish development and open the door for additional losses toward 1.2420 (static level).”