Will the BoE interest rate decision shock the market?
|Overview
It is a big day for sterling tomorrow (GBP). We have the Bank of England interest rate decision and monetary policy summary at 12 (UK) followed by the BoE’s governor, Bailey, speaking at 12.30 pm.
The markets are expecting a rise from 1.25% to 1.75% in the UK base rate. Anything less than expected could cause some weakness in GBP.
Technical
An interesting setup that I have been focusing on is a potential EURGBP long position. We have a Fibonacci confluence level at 0.8313. This will complete a bullish technical cypher pattern known as a Gartley, often resulting in a move to the upside.
EUR/GBP daily chart
Let us look at the single currency baskets.
EUR
Completed a bullish cypher pattern know as a Butterfly formation.
GBP
Close to a resistance zone that ‘could’ form the start of a bearish leg (BC) of a large cypher Crab formation.
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