GBP/USD is attempting a bounce above as the US dollar eases

GBP/USD is picking up fresh bids on 1.3900, as bulls are trying a last dance ahead of the all-important Bank of England (BOE) monetary policy decision. The BOE is expected to publish new economic forecasts, although the vote composition on the bond-buying program will hold the key for fresh direction on the GBP. At the time of writing, GBP/USD is trading around 1.3912, up 0.20% on the day, underpinned by the declining trend in coronavirus cases in the UK. Meanwhile, the US dollar is holding onto the Fed Vice Chair Richard Clarida’s hawkish comments-led gains ahead of the US weekly Jobless Claims and Fedspeak.

Looking at the four-hour chart, GBP/USD is looking to reclaim ground above the 21-Simple Moving Average (SMA) at 1.3907, having bounced off the ascending 50-SMA support line at 1.3895 earlier on. The next target for the bulls is seen at the falling trendline resistance at 1.3952. The Relative Strength Index (RSI) at 53.71 backs the latest move higher. On the flip side, if the 50-DMA support cracks, then the price could drop towards the horizontal 200-SMA at 1.3838. The next line of defense for the bulls is seen at $1.3900.