STERLING FINDS SUPPORT FROM 200 HOUR MA

The GBPUSD pair is gradually starting to recover losses towards the 1.3140 region, after dropping to 1.3112 following the Bank of England's decision to keep interest rates on hold and lowering the United Kingdom growth prospects this year.

Sterling has now found support from the crucial H1 time frame, 200 period moving average, at 1.3130, just above last week's bullish break out zone, located around the 1.3125 level.

The GBPUSD pair remains bullish in the medium and long term, as long as price continues to trade above the 1.3082 level. The short-term outlook on sterling also remains bearish below the 1.3190 level.

Key technical resistance is found at the daily pivot point, at 1.3174, and then the crucial 1.3190 level, which is now converging with the H1 time frame, 100 period moving average.

To the downside, a higher time frame close below the 1.3125 level may accelerate losses towards the 1.3082 to 1.3094 region.

Should price trade below the 1.3082 level, GBPUSD intraday losses may be seen towards the 1.3047 and 1.2990 levels.