GBP/USD Forecast: Bulls hold the grip despite being cautious
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Subscribe to PremiumGBP/USD Current price: 1.3150
- A generally optimistic BOE underpinned the Pound, negative rates out of the table for now.
- UK economy is seen contracting this year by 9.5% vs the previous estimate of -14%.
- GBP/USD consolidates gains with the risk still skewed to the upside.
The GBP/USD pair has posted a higher high for this month, as the BOE underpinned the Sterling. The GBP/USD pair peaked at 1.3185, following the Bank of England monetary policy meeting, as policymakers decided to leave the current rate unchanged at 0.1% in a unanimous decision. Also, the growth forecast has suffered an upward revision, with the economy seen contracting this year by 9.5%, against a previous estimate of -14%. BOE’s Governor Bailey offered an optimistic speech, remarking that, while negative rates are part of the toolbox, they are not thinking on using them, but instead, suggested that they can do more QE or use new forms of forward guidance.
GBP/USD short-term technical outlook
After BOE’s dust settled, the GBP/USD pair has spent most of the day consolidating in the 1.3150/60 price zone. The risk remains skewed to the upside, according to intraday readings, as the 4-hour chart shows that the pair continues to develop above a modestly bullish 20 SMA. The larger moving averages head higher well below the shorter one, as technical indicators remain well above their midlines, with uneven strength. The next directional move will depend on US employment data, which will set the tone for the greenback ahead of the weekly close.
Support levels: 1.3080 1.3035 1.2990
Resistance levels: 1.3165 1.3200 1.3250
GBP/USD Current price: 1.3150
- A generally optimistic BOE underpinned the Pound, negative rates out of the table for now.
- UK economy is seen contracting this year by 9.5% vs the previous estimate of -14%.
- GBP/USD consolidates gains with the risk still skewed to the upside.
The GBP/USD pair has posted a higher high for this month, as the BOE underpinned the Sterling. The GBP/USD pair peaked at 1.3185, following the Bank of England monetary policy meeting, as policymakers decided to leave the current rate unchanged at 0.1% in a unanimous decision. Also, the growth forecast has suffered an upward revision, with the economy seen contracting this year by 9.5%, against a previous estimate of -14%. BOE’s Governor Bailey offered an optimistic speech, remarking that, while negative rates are part of the toolbox, they are not thinking on using them, but instead, suggested that they can do more QE or use new forms of forward guidance.
GBP/USD short-term technical outlook
After BOE’s dust settled, the GBP/USD pair has spent most of the day consolidating in the 1.3150/60 price zone. The risk remains skewed to the upside, according to intraday readings, as the 4-hour chart shows that the pair continues to develop above a modestly bullish 20 SMA. The larger moving averages head higher well below the shorter one, as technical indicators remain well above their midlines, with uneven strength. The next directional move will depend on US employment data, which will set the tone for the greenback ahead of the weekly close.
Support levels: 1.3080 1.3035 1.2990
Resistance levels: 1.3165 1.3200 1.3250
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