GBP in focus into the Bank of England Meeting

  • The macroeconomic spotlight Thursday is on the Bank of England Meeting and no changes in interest rates are expected.
  • Financial market participants will focus on the any change in tone given shifts in UK economic political backdrop with the calling of a general election since the last meeting.
  • The US Dollar has stayed firm this week as US Treasury Bonds moves to higher yields has encouraged a strengthening of the US Dollar, with the US currency rallying across the Forex board and also against the Pound.

GBPUSD: Risks stay lower to key 1.2787

A selloff Wednesday through 1.2857 and 1.2843 support to reinforce losses from the start of November down from 1.2976, to sustain a more negative tone and keep risks lower for Thursday.

The impulsive advance through 1.2413 saw us shift our intermediate-term view to bullish, BUT with risks for an intermediate-term shift to neutral below 1.2787.

For Today:                                              

  • We see a downside bias for 1.2835; break here aims for 1.2805 and 1.2787.
  • But above 1.2654 opens risk up to 1.2938, maybe 1.2976.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3013.

  • Higher targets would be 1.3177, 1.3397, 1.3473 and 1.3618
  • What Changes This? Below 1.2787 shifts the intermediate-term outlook to neutral and below 1.2514 to a bear theme.

4 Hour 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

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

Pound stays vulnerable to losses – GBPUSD forecast

The Pound Sterling has been under downside pressures over the past week and in fact since the start of 2020.This has been driven by three factors with respect to the GBPUSD Forex rate:A more dovish tone from at least three members of the Monetary Policy Committee of the Bank of England, including outgoing Governor Carney, with new voices for a possible rate cut being raised… Continued

GBP/USD Selling Breaks Cloud Top Brings 1.2902 Swing Into Focus; Short-Sterling On Verge of Range Resolution

GBP is under broad pressure as dovish weekend comments from Bank of England’s monetary policy committee ratchets rate cut bets. Jan. 31 BoE rate cut odds jump to 50-50 vs. a 0% chance of a move just a week ago. GBP/USD has pierced key support from the Ichimoku Cloud Top and pressures a move to key swing low at 1.2902; below here would bolster negative risks… Continued

Previous signals confirmed with US Dollar strength

US Dollar rotates up (DXY)Euro down (EURUSD)Pound hovers above final short term support (GBPUSD)Major signals in the Japanese Yen (USDJPY bullish) and Canadian Dollar (USDCAD bullish). Continued

GBPUSD forecast remains to the downside

Global financial markets have seen some aggressive swings to tart 2020 with the tension in the Middle East, particular on the individual stock and equity index, alongside the Gold and Oil markets.On the Forex side, however, despite a choppy tone to USDJPY and Japanese Yen cross rates (due to the aforementioned tensions and the Japanese Yen’s position as a safe haven currency), FX markets have… Continued

New Year signals Forex reversals

US Dollar Index (DXY), Euro Dollar (EURUSD), Aussie (AUDUSD) and Pound (GBPUSD) all signal reversalsUptrend ends in the Kiwi (NZDUSD) Continued

Forex Brokers in your location