Sterling found support after the BoE raised its forecast for Britain’s economy and hinted at reducing its stimulus program. The bullish MA cross on the daily chart may give buyers an edge as the price action wraps up its sideways action. A confirmation may come in with a breakout above 1.3960.
Strong momentum above the psychological level of 1.4000 could prompt short-term sellers to bail out. This would resume the pair’s upward trajectory.
On the downside, the demand zone between 1.3800 and 1.3840 is of interest for those wishing to bet against a soft greenback.