GBP/USD: Risk reversal jumps to two-month high ahead of BOE Super Thursday

Anil Panchal FXStreet

One-month risk reversals on the British pound (GBP), a gauge of calls to puts, jumps to the highest since March 02 by the of Wednesday’s trading session, indicating investors are adding bullish bets to position for cable strength ahead of the key Bank of England (BOE) meeting.

Risk reversals jumped to +0.400 in favor of call or bullish bets according to the latest data provided by Reuters. The gauge peaked at +0.65 in favor of calls during February.

The positive reading indicates call options are drawing higher premium (option price) than calls or bullish bets. In other words, the options market is most bullish two months ahead of the key UK event.

That said, GBP/USD wobbles inside a short-term triangle, not to forget the two-month-old trading range, despite recently picking up bids near 1.3905.

Given the bullish sentiment of the options market, coupled with the recovery in prices inside the stated triangle, GBP/USD buyers stay hopeful.

GBP/USD daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.3906
Today Daily Change	17 pips
Today Daily Change %	0.12%
Today daily open	1.3889

Trends
Daily SMA20	1.3847
Daily SMA50	1.3864
Daily SMA100	1.3772
Daily SMA200	1.3437

Levels
Previous Daily High	1.3915
Previous Daily Low	1.3838
Previous Weekly High	1.3976
Previous Weekly Low	1.3803
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.3868
Daily Fibonacci 61.8%	1.3886
Daily Pivot Point S1	1.3846
Daily Pivot Point S2	1.3804
Daily Pivot Point S3	1.377
Daily Pivot Point R1	1.3923
Daily Pivot Point R2	1.3957
Daily Pivot Point R3	1.3999

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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