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

Steve Miley

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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