The British pound is consolidating towards the lower end of its recent range against the US dollar, following last weeks rejection from the 1.4000 level. The four-hour time frame shows the Bollinger Band indicator continues to narrow, meaning that a breakout could be looming. It is possible that the GBPUSD pair could remain trapped in sideways trading action until the Bank of England meeting this week.
The GBPUSD pair is only bullish while trading above the 1.3960 level, key resistance is found at the 1.4000 and the 1.4140 levels.
If the GBPUSD pair trades below the 1.3960, sellers may test the 1.3840 and 1.3700 support levels.