While a BoE rate cut of 0.25% is widely anticipated today, the market's focus will be on the post-meeting guidance, which could clarify the future path of monetary policy. The decision is influenced by a weakening labor market and a significant government deficit of 51 bln USD. A dovish stance could lead to a faster pace of cuts, dampening the pound.
From a technical perspective, the GBPUSD pair has broken above the EMA78, signaling further potential gains. However, it is currently facing resistance at 1.33800. A break above this level could see the pair test the next resistance at 1.3440. Conversely, a failure to hold this level could lead to a fall toward the support at 1.3150.
By Van Ha Trinh - Financial Market Strategis at Exness
From a technical perspective, the GBPUSD pair has broken above the EMA78, signaling further potential gains. However, it is currently facing resistance at 1.33800. A break above this level could see the pair test the next resistance at 1.3440. Conversely, a failure to hold this level could lead to a fall toward the support at 1.3150.
By Van Ha Trinh - Financial Market Strategis at Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.