GBP/USD spins in Asia, circles 1.3955 ahead of London market open

• GBP/USD logs a quiet day, but plenty of action could come from European market session.
• BoE to drop their rate decision on Thursday; markets expect a May increase.

GBP/USD spent most of a disastrous Asia session rotating tightly around 1.3955; price is currently testing resistance at 1.3975, but still well inside congestion following the recent days' market conniptions that saw global equities markets tanking amid fears inflation will spark rate increases, signalling the end of the easing era.

The UK has a fairly quiet week lined up, until the BoE gives their Monetary Policy Summary and Rate Decision at 12:00 GMT on Thursday. While a more hawkish tone is expected the from UK's central bank, a rate increase is not expected until May at the earliest.

GBP/USD Technicals

Intraday support/resistance is parked conveniently at 1.3940 and 1.3975 respectively, while H4 charts show a break below the 34 EMA; if price isn't able to find a good lift up the charts, traders may begin to price in a continuation of the recent bearish momentum. Daily charts are decidedly more serene, with price trading well above the 34 EMA and 200-day SMA.

Today's pivot points:
R2: 1.4216
R1: 1.4086
PP: 1.4020
S1: 1.3890
S2: 1.3825