Investors and traders will be looking at the Bank of England’s monetary policy It is widely expected that the BOE will not change its monetary policy today i.e no change in interest rates or asset purchase program. However, what the market is expecting from the Governor of the Bank of England is that he will be jawboning a lot. Bailey is likely to use the forward guidance to address many issues such as the weak economic numbers and what plans are there to kick start the economy.
has been maintaining its upward trend against the however for the past few days, we have started to see some weakness. If the BOE does what the market is expecting then we are likely to see more strength for the British Pound. On the other hand, if there is an interest rate cut by the BOE, a complete surprise move, then we could see some serious sell-off.
In terms of technical analysis, the GBP/USD pair is trading above the 50, 100 and 200-day SMA on the daily time frame which means that bulls are in control of the price. The immediate resistance is at 1.3693 and the support is at 1.3453
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