GBP/USD hangs near multi-week low, oscillates in a variety simply above 1.2700 ahead of BoE
During Thursday’s Asian session, the GBP/USD pair enters a bearish debt consolidation phase, moving in a tight range just above a nearly one-month low in the 1.2680 region hit the day before. Rates in this area are trading near the 1.2700 level since investors are waiting for today’s expected Bank of England (BoE) monetary policy upgrade before making any rash decisions.
The UK central bank may have to revert to a lesser 25 bps lift-off if the trending UK CPI drops sharply to 7.9% YoY in June from 8.7% in May. The change will cause the benchmark rate to rise to 5.25 percent, the highest level since December 2007. As inflation remains well above the BoE’s 2% target, some investors anticipate a further rate hike of 50 basis points. The ensuing financial policy pronouncement and the subsequent news conference will be the main points of interest. The outlook will play a crucial role in influencing the British pound and providing new directional incentive to the GBP/USD pair against the backdrop of the current swings in expectations about the future rate-hike course. Learn more about…
GBP/USD Price Analysis: Aims towards 1.2700 after a break of rising channel
With Thursday’s scheduled release of the Bank of England’s (BoE) monetary policy decision in the spotlight, the British pound fell below the bottom of a rising channel and headed for the psychological 1.2700 level. As the Asian trading day begins, the British pound is trading at 1.2715, up 0.04% from where it started.
According to the daily chart, the GBP/USD pair is neutral to bearish after falling below the 50-day Exponential Moving Average (EMA) at 1.2742 during Wednesday’s trading session. In addition, the GBP/USD continued its decline below the rising channel’s bottom, which opened the door for further declines. This, together with the bearish RSI signal, might pave the way for a price decline below 1.2700. Three-day Rate of Change (RoC) diverges somewhat from rate action, suggesting the 1.2700 psychological level may prove resilient in the immediate future. Explore further…
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