GBP/USD looking to stage a correction from 1.35 as the BoE's interest rate call looms

• Sterling sits at the bottom of a long fall as the BoE has been forced to turn dovish once again.
• Little on the economic schedule for the UK ahead of Thursday's BoE rate call.

The GBP/USD is catching a relief lift in the Asia session, pushing back into 1.3560 after dipping to 1.3486 to end last week on Friday.

GBP/USD Weekly Forecast: US Dollar shows no mercy with Sterling

Monday is a quiet affair for the Sterling with little on the economic calendar, reflecting most of the upcoming week, until Thursday hits. Thursday brings the Bank of England's (BoE) May rate call, a highly-anticipated monetary policy meeting for the UK. Traders largely expected a rate increase from the BoE this month, contributing to the GBP's rise in recent months. Following a rash of disappointing economic data for the kingdom, however, expectations of a rate hike from the BoE have all but evaporated and the BoE is expected to walk back their previously-hawkish rhetoric back once again.

GBP/USD revival likely as dovish BoE may be priced in

With the Sterling's recent pummeling on the charts, there's a chance that a dovish and waffling BoE could already be priced into the charts, and as  Fawad Razaqzada noted, "but with the pound correcting itself over the past three weeks, we don’t think that BoE’s likely inaction would necessarily lead to further declines for the pound, for this outcome is mostly priced in now. What the pound does next will surely depend on the BoE’s revised growth and inflation targets and hints about the timing of the next rate rise."

GBP/USD analysis: all eyes on BOE

GBP/USD Levels to watch

As FXStreet's Chief Analyst Valeria Bednarik noted about the GBP's technical positioning heading into the new week: "the pair fell for a ninth consecutive day last Friday, lifting odds for an upward corrective movement ahead, although it could be reduced to some consolidation around current levels if demand for the greenback persists. In the daily chart, technical indicators have decelerated but remain in extreme oversold levels, while the pair settled far below its moving averages, with the 20 DMA heading south almost vertically, but over 400 pips above the current level. Shorter term, and according to the 4 hours chart, the pair is still developing below a bearish 20 SMA, while technical indicators lack clear directional strength inside negative territory, indicating that the bulls are still sidelined."

Support levels:  1.3510 1.3485 1.3450

Resistance levels: 1.3610 1.3645 1.3690