For the second day in a row, GBP / USD is trading in a tight range, close to the important 1.3900 level.
Investors are awaiting the outcome of the Bank of England meeting on interest rates, although the majority understands that the regulator will not change monetary policy. Markets want to know the forecasts for economic growth and get a hint of the outlook for monetary policy.
Also today in the UK will be published an index of business activity in the service sector for April from Markit. The indicator is expected to remain around 60.1 p.p.
Bollinger Bands indicator according to the daily chart smoothly rebuilds in the horizontal direction when the price range narrows.
The MACD indicator is growing very uncertainly in a positive range.
The stochastic oscillator is flat in the middle of the working area.
With a breakdown upward at 1.3930, open long positions with a take profit of 1.4000. The stop loss is placed at 1.3900.
A break below 1.3860 will signal the return of the bearish dynamics. We open sells with an eye on 1.3801. We also place stop loss at 1.3900