The Bank of England is largely expected to keep rates steady in its MPC meeting Thursday with expectations largely calling for a rate cut only in August. Current expectations aside however the latest CPI figures will likely provide guidance for the market, consensus forecast calls for a return to the target rate of 2.0%, failure to do so may just push the MPC to an even later cut while anything lower might also lead to changes in expectations.
Resistance
- 1.28095 – Daily Consolidation Resistance
- 1.27431 – 20D Moving Average
- 1.27100 – Intraday Consolidation Floor
Support
- 1.26569 – Friday’s Low
- 1.26141 – 50D Moving Average
- 1.25721 – Daily High / Low
GBPUSD started the week mostly stuck in consolidation before a brief surge in late US trading for a positive close. This however should be taken in the context of Friday’s sell-off and the broadening pattern in daily charts suggesting vulnerability. Given a relatively minor immediate resistance immediate risk is likely to be for the upside though we would be waiting for possible shorts from the 1.27431 region. Give us either long hourly wicks or a bearish breakout after a period of consolidation.
