Following up with the short GBP/USD trade from the previous week, I am well in-the-money as the exchange rate slipped to a low of 1.5304 during the overnight trade, and I will maintain the position as price action continues to trade within the downward trending channel from the August high (1.5997). However, as the Bank of England is scheduled to announce its interest rate decision on Thursday at 11:00 GMT, there could be increased volatility in the pound-dollar as investors weigh the prospects for future policy, and I will move my stop down to the 200-Day SMA at 1.5414 to lock-in a small profit. Nevertheless, as the 20-Day SMA continues to trend lower and looks poised to cross below the 50-Day SMA later this week, the bearish signal continues to suggests further weakness for the British Pound, and I will maintain the target at the 100-Day SMA at 1.5130.
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