GBP/USD pushes lower as we head toward the BoE rate decision later this week

GBP/USD makes a lower high and lower low on the hourly chart.
Today the UK are set to pick a new House speaker after Bercow leaves his post.
BoE are expected to leave rates unchanged at this weeks BoE meeting.

Rajan Dhall, MSTA FX Daily

Cable is trading 0.14% lower today as a mixture of USD strength and mild GBP weakness moved GBP/USD lower.

On the hourly chart below, there has been a lower high lower low formation forming. The main support is still at 1.2787 and if this breaks it would break the wave low on the daily chart.

Today the UK are also set to pick a new speaker of the House of Commons after John Bercow stepped down after 10 years of service. Lindsey Hoyle is seen as the bookies favourite to win the ballot, according to bookmaker Ladbroke's latest odds.

Also this week we have the matter of the latest Bank of England rate decision where the BoE are expected to leave rates unchanged. The question traders are asking this week is if the BoE are going to turn slightly dovish to follow some of the other central banks in the world. Although they are not expected to change their monetary policy stance the tone of the statement could come into focus but the key issue for the UK is still the UK election and Brexit.

Lastly, on the hourly chart, the RSI has made a failure swing. This is when the price makes higher lows but the indicator posts lows toward the oversold area. The can be a bullish signal showing that short term selling momentum is overdone.

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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