FX.co ★ GBP/USD Hot Forecast for February 2, 2021

• GBP/USD consolidates gains below 1.3700 amid risk-on mood
• Surging US bond yields helped revive the USD demand
• The downside seems cushioned as the focus remains on the upcoming BoE meeting.

Weekly and monthly Doji candles signal strong indecision, as weekly studies are in bullish setup and underpin the action, while monthly chart shows fading bullish momentum and strongly overbought conditions.

The GBP/USD pair retreated around 40 pips from daily tops and was last seen trading with only modest gains, around the 1.3670region. GBP/USD holds gains below 1.3700, snapping a two-day downtrend. The bulls need extra fuel to cross the multi-month top marked the previous day.

On the downside, an acceptance under 1.3650 support which restricted the downside move will open the gates to 1.3600 . A break below the round figure mark and ascending trend-line would shift the attention to the downside.

Following the previous day's pullback from the multi-year tops, around the 1.3760, the pair regained positive traction on Tuesday and climbed back above the 1.3700 mark. Recent range tops at 1.3750 zone, mark pivotal barrier, with firm break here to generate initial signal of bullish continuation.