Pound setting up negative into Bank of England (GBPUSD forecast)

Intermediate
  • The Monetary Policy Committee (MPC) of the Bank of England (BoE) meet today to decide on interest rates.
  • There is growing expectation for a rate cut, with the market going into this meeting with uncertainty.
  • However, from recent comments from MPC members, it is clear this vote will be closer than recent meetings.
  • Even if the BoE do not cut today interest rates, a far more dovish tone is expected to come out from the meeting, which could see the Pound weaker across Forex rates.
  • Here we focus on GBPUSD.

GBPUSD day trade outlook: Threat stays lower

A negative consolidation Wednesday after Tuesday’s selloff through 1.2996 support to just hold above the important 1.2962/54 area (at 1.2975), to retain negative forces from last week’s rebound failure from just above the 1.3169 resistance level (from 1.3171), keeping the bias lower into Thursday.

  • We see a downside bias for 1.2975 and the significant 1.2962/54 low; a break below aims for key 1.2904.
  • But through 1.3065 targets 1.3107/10.

GBPUSD intermediate-term outlook

We see an intermediate-term range theme defined by 1.2904 to 1.3284.

Upside risks: Above 1.3284 sets an intermediate-term bull trend and upside risk for and 1.3422, 1.3515, 1.3618 and 1.4000.

Downside risks: Below 1.2904 sets an intermediate-term bear trend and aims for 1.2768, 1.2516 and maybe 1.2197.

GBPUSD Chart

GBPUSD chart

Editor in chief

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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