British Pound Forecast: GBP/USD, GBP/JPY Levels to Watch Ahead of BoE

• The British Pound looks set to extend gains against its haven-associated counterparts ahead of the BoE rate decision.

• GBP/USD rates perched constructively above the trend-defining 55-EMA.

• GBP/JPY tracking within the confines of an Ascending Channel.

The British Pound slid lower against its haven-associated counterparts at the end of April, on what appeared to be month-end rebalancing by market participants. With bullish technical formations still in-tact, GBP looks set to continue gaining ground against JPY and USD ahead of the Bank of Englands rate decision on May 6.

The formation of a Shooting Star candle, followed by a Bearish Engulfing confirmation, suggests that GBP/USD rates could be at risk of further losses in the coming days.

However, with price continuing to track within an ascending Schiff Pitchfork, and the moving averages stacked in a bullish fashion, the path of least resistance seems higher.

Remaining constructively positioned above pitchfork parallel support and the 1.3800 handle probably opens the door for buyers to drive the exchange rate back towards the April high (1.4009), if 8-EMA resistance doesnt stifle bullish momentum.

Alternatively, clearing the trend-defining 55-EMA (1.3816) and 1.3800 mark likely precipitates a move to test the 50% Fibonacci (1.3712).

GBP/JPY rates, on the other hand, appear poised to continue gaining ground in the near term, as prices track within an Ascending Channel and above all six moving averages.

Indeed, with the RSI and MACD both tracking above their respective neutral midpoints, further gains look likely.

A daily close above 152.00 probably ignites a push to challenge the yearly high (153.41), with a convincing break above that bringing 153.85 into focus.

However, if sellers drive price back below the 8-EMA (150.96), a short-term pullback to the 55-EMA (149.40) and channel support may be at hand.

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