GBP/USD trying to catch a break as BoE rate decision looms

• GBP/USD up but cautious in Asia.
• Sterling to be tested by BoE Super Thursday risk event.

GBP/USD managed to climb higher through Tokyo, currently trading into the 1.3900 handle heading into European markets. The Sterling is clambering for a higher position on the charts after getting tossed out with the bath water in the markets' recent sweep of risk aversion, being the loser of the major currencies on the back of Brexit concerns, and is down around 3% from mid-January thus far.

The real risk to GBP/USD and currency markets in general will be knock-on risk appetite following the UK's 'Super Thursday' triple-bill of the Bank of England (BOE) interest rate decision, minutes from the monetary policy committee (MPC) meeting, and the quarterly inflation report, all at 12:00 GMT. With equities trading softer for most of the day up until the end, and commodities off their recent recoveries but still grappling for more, it won't take much of a dovish push to throw risk aversion back into the mix, sending traders piling into safe havens and riskier assets down the charts once again.

GBP/USD Technicals

Despite the bullish bias in longer-term timeframes, the GBP/USD hasn't fared well in intraday trading, and swing points at 1.3872 (support) and 1.3915 (resistance) are blocking the way. Daily candles have price currently retracing from 18-months highs into the 34 EMA, which is still about the 200-day SM, while H4 technical indicators show price could be gearing up for a bullish reversal if markets can manage to keep their fingers on the risk button long enough.

Today's pivot points:
R2: 1.4052
R1: 1.3965
PP: 1.3907
S1: 1.3820
S2: 1.3762