GBP/USD Price Analysis: Struggles to cross 1.2300 ahead of Fed/BOE policy

• GBP/USD is facing hurdles in conquering the round-level resistance of 1.2300.
• An explosion of a symmetrical triangle results in wider ticks and heavy volume.
• The 200-EMA around 1.2200 is acting as major support for the Cable.

The GBP/USD pair is struggling to surpass the immediate resistance of 1.2300 in the early Asian session. The Cable is displaying topsy-turvy moves from Friday in a range of 1.2200-1.2300, which indicates a volatility contraction, and an explosion of the same results in wider ticks and volume. Also, investors are restricting themselves from making significant positions ahead of the monetary policy announcements by the Bank of England (BOE) and the Federal Reserve (Fed).

Meanwhile, the US Dollar index (DXY) is struggling to sustain above the round-level support of 105.00. A significant improvement in investors’ risk appetite has trimmed the appeal for safe-haven.

On an hourly scale, the Cable is oscillating in a Symmetrical Triangle chart pattern that indicates a volatility contraction and a sideways performance. The upward-sloping trendline of the chart pattern is plotted from December 7 low at 1.2107 while the downward-sloping trendline is placed from December 5 high at 1.2345.

The 200-period Exponential Moving Average (EMA) at around 1.2200 is providing support to the pound Sterling. Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a consolidation ahead.

For more upside, a decisive break above December 9 high at 1.2323 will drive the Cable toward June 7 low at 1.2430, followed by the psychological resistance at 1.2500.

On the flip side, a drop below Friday’s low of around 1.2200 will drag the asset toward December 7 low at 1.2107. A breakdown of the latter will expose the major for more downside toward November 15 high at 1.2029.

GBP/USD hourly chart