GBP/USD Outlook (19 December 2019)

Overall, GBP/USD is trending upwards. Recently, GBP/USD’s downtrend has stagnated ahead of the Bank of England’s (BoE) interest rate decision later at 2000 (SGT).
It is expected that the BoE will be holding interest rate unchanged at 0.75%.
The U.K. CPI y/y data (Actual: 1.5%, Forecast: 1.4%, Previous: 1.5%) released yesterday was better than forecasted.
With the low inflation level falling short of the BoE’s 2 percent target, read the monetary policy statement and look for hints of monetary policy easing in 2020.
Currently, GBP/USD is hovering around the key level of 1.31. Its next support level is at 1.29800 and the next resistance level is at 1.31700.
Stay out of GBP/USD for now.