Pound break despite the MPC meeting is coming

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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










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