• GBP/USD sellers return on Super Thursday, as BOE and Brexit talks eyed.
  • BOE is likely to defy market expectations and keep rates steady at 0.1%.
  • Brexit talks also likely to play out as the US dollar attempts a bounce.

GBP/USD is resuming its recent downtrend on Super Thursday, reversing the Fed-led impressive rebound from near three-week lows of 1.3606.

All eyes on the BOE event

The GBP bears have fought back control, as speculations surrounding an imminent rate hike by the Bank of England (BOE) die down after the Fed disappointment on Wednesday.

The Fed tapering its bond-buying by $15 billion per month but at the same time, Chair Jerome Powell said that they remain patient on the interest rate hikes until their maximum employment goal is accomplished. He also tweaked the wording around inflation, noting that rising price pressures are ‘expected to be transitory.’

In the lead-up to the BOE rate decision, the CME BOEWatch tool shows a 55% probability of a rate lift-off at the central bank’s November meeting. Although it could be a close call for the BOE policymakers as they continue to assess the inflation and Brexit risks.

On the Brexit front, tensions continue to persist between the European Union (EU) and the UK over the Northern Ireland (NI) protocol.

The European Commission Vice President Frans Timmermans said it was “extremely well-known in London” that the demand to ditch the European Court of Justice (ECJ) could not be met.

This comes after UK Brexit minister Lord Frost said that the ECJ should be replaced with an independent arbitration panel and that it can have no role in settling disputes in Northern Ireland, per the Independent.

Meanwhile, the UK-French conflict over the post-Brexit fishing rights continues to remain a headwind for the pound. Traders now brace for the all-important BOE decision for the next direction in the currency pair. Brexit talks in Paris will also hog some attention alongside the US weekly jobless claims.

GBP/USD: Levels to consider

GBP/USD

Overview
Today last price 1.3661
Today Daily Change -0.0023
Today Daily Change % -0.17
Today daily open 1.3686
 
Trends
Daily SMA20 1.3705
Daily SMA50 1.371
Daily SMA100 1.3768
Daily SMA200 1.3852
 
Levels
Previous Daily High 1.3692
Previous Daily Low 1.3608
Previous Weekly High 1.3829
Previous Weekly Low 1.3668
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.366
Daily Fibonacci 61.8% 1.364
Daily Pivot Point S1 1.3632
Daily Pivot Point S2 1.3577
Daily Pivot Point S3 1.3547
Daily Pivot Point R1 1.3716
Daily Pivot Point R2 1.3746
Daily Pivot Point R3 1.3801

 

 

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