GBP/USD finds support near 1.3210 ahead of BoE, PMI


The Sterling has recovered the ground lost during early trade, now prompting GBP/USD to return to the vicinity of 1.3230 after bottoming out near 1.3210.

GBP/USD all eyes on BoE

Cable is trading within a cautious range on Thursday ahead of the key BoE MPC meeting and Inflation Report expected afterwards.

Spot has been buoyant since the recent breakout of 1.3200 the figure, always on the back of the persistent weakness surrounding the greenback while headlines from the domestic scenario remain absent so far.

Ahead in the session, market consensus expects the key UK’s services PMI to come on the soft side after the mixed reports from the manufacturing and construction gauges seen in past sessions.

Regarding the BoE, strategists at TD Securities sees the central bank delivering a somewhat dovish message today, while attention should be mainly on the MPC vote: “We think that June was probably peak hawkishness for the MPC after a series of upside inflation surprises largely reversed in July. With little chance of a rate hike this week, we think that the market reaction to the BoE decision will depend on the result of the vote and the changes to the macro forecasts”, commented the strategists.

GBP/USD levels to consider

As of writing the pair is up 0.01% at 1.3224 facing the immediate hurdle at 1.3250 (2017 high Aug.2) followed by 1.3351 (high Sep.12 2016) and finally 1.3447 (high Sep.6 2016). On the other hand, a breach of 1.3188 (low Aug.1) would open the door to 1.3124 (10-day sma) and finally 1.3094 (23.6% Fibo of 1.2587-1.3250).

In addition, Cable is near overbought levels at 67 when gauged by the daily RSI (14), while the MACD stays on the bullish side for the time being.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures