GBP/USD may drop first before it pulls back to the upside.

GBP is a bit under pressure after BOE delivers a dovish statement. But GBP/USD is still supported because of the USD's weakness.

Market commentators said that the sanctions announced by the US against Russia on Tuesday weren't as harsh as feared, facilitating the broad rebound in risk assets and selling pressure on safe-havens.

Market commentators also noted that US officials also committed to implementing further sanctions on Russia if needed.

But still, GBP/USD has big chances to go upside. 1.3640/1.3650 is identified as a trendline and horizontal resistance from the price zone.

So, as long as GBP/USD is below the resistance level, it has chances to drop first. But if GBP/USD can break above the trendline resistance, the scenario will be different than it has a long way to go upside.

On the other hand, 1.3500/1.3480 is a powerful support zone. So, as long as GBP/USD is above 1.3480/1.3500, there will be a strong upside bias.

So, if GBP/USD drops nearly 1.3500/1.3480 price zone, it may be a wise decision to play into buy with stop loss below the 1.3420 price zone.

On the other hand, If GBP/USD breaks above 1.3650, there will be an explicit confirmation of upside breakout. Our first target to the upside is 1.3740/1.3750. Breaking above 1.3750 will open the door for 1.3820, and the final target to the upside is the 1.3950/1.4000 price zone.

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