Bank of England Rate Cut has only minor negative impact on the GB Pound

Video Analysis

The technical threat is mounting for an intermediate-term bull tone into mid-September, signalled by a break above 1.3534.
UK data continues to surprise on the upside, most recently on Monday 5th September with the Services Sector Purchasing Managers Index (PMI) survey for the UK which bounced back from 47.4 in July to 52.9 for August.

A Tuesday push above 1.3376/84 resistances, still building on the base structure from mid-August and the surge higher to start September, to maintain a positive tone into Wednesday.

Risk is growing for an intermediate-term bullish shift above 1.3534 into mid-September. 

For Wednesday (7th September):

  • We see an upside bias for 1.3449; break here aims for 1.3478/81, maybe 1.3497 and key 1.3534.
  • But below 1.3326 opens risk down to 1.3248.

Short/ Intermediate-term Range Parameters: We currently see a range defined by 1.2791 and 1.3534.

Range Breakout Challenge

  • Upside:Above 1.3534 aims higher for 1.3637 and 1.3899.
  • Downside:Below 1.2791 sees risk lower for 1.2565, 1.2000 and 1.1880.

Daily GBPUSD Chart
GBPUSD

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Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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