GBP in focus into the Bank of England Meeting

Intermediate
  • 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

GBPUSD

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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