FX.co ★ GBP/USD Hot Forecast for 3 February, 2021

• A positive pickup in the USD demand prompted fresh selling around GBP/USD on Wednesday.
• The downside is likely to remain limited as the focus remains on the BoE meeting on Thursday.

On Tuesday, the GBP/USD exchange rate breached the rising wedge pattern south.The GBP/USD pair maintained its offered tone through the mid-European session and dropped to fresh daily lows, around the 1.3620-15 region in the last hour.

Following the previous day's good two-way price swings, the pair came under some renewed selling pressure on Wednesday and was pressured by a goodish pickup in the US dollar demand.

From a technical perspective, the pair has been oscillating in a range over the past two weeks or so. The range-bound price action constitutes the formation of a rectangle, indicating a brief pause before the next directional move. However, repeated failures near the 1.3750 congestion zone warrant some caution. This crutial to wait for a sustained breakout from the mentioned trading range before placing any directional trades.

The lower boundary of the trading range is pegged near the 1.3610-1.3600 region, which if broken decisively will cause the near-term downside bias. The pair might then accelerate the corrective slide and drop to challenge the key 1.3500 psychological mark.