Prospects for the British Pound remains heavily weighed by the thought of a dovish Bank of England with an upcoming policy meeting on Thursday 11am GMT. Until then we have very little market moving economic data and as such expect limited ranges though keeping a bearish bias.
Resistance
- 1.26665 – 61.8 Fibonacci Retracement Level
- 1.26342 – Friday’s High
- 1.25943/070 – Monday’s High / 50D Moving Average
Support
- 1.25378 – Intraday Consolidation Floor
- 1.25042 – Intraday Consolidation Lows
- 1.24713 – Daily Consolidation High / Low
The combination of long wicks, a bearish daily oscillator and strong resistances has us focused on looking for an excuse to sell GBPUSD. Going Intraday we have a descending triangle in the 4H charts to reinforce the wait for a bearish breakout. Consider a push below 1.25378 as our entry or long hourly wicks from 1.25943 as an excuse to sell. Any sell-off for now though is likely to be limited as we wait for Thursday’s BoE MPC meeting where a dovish tone should reinforce the notion of heading to previous swing lows at 1.23495.
