7 Aug 2013
BoE Quarterly Inflation Report due next: impact on GBP/USD
FXstreet.com (Edinburgh) -The BoE will release its Quarterly Inflation Report later. The event has grown in importance as of late after Governor M.Carney will decide on forward guidance and/or the adoption of thresholds to determine the UK monetary policy in the future.
Market consensus expects a dovish tone from the central bank, opening the door for further weakness in the sterling. The GBP/USD is now trading in red and bouncing off lows after putting the 1.5300 key support to the test. Key levels to watch post-BoE are 1.5392, Tuesday’s highs and then 1.5416, high July 26th. On the downside, the initial support aligns at the psychological 1.5300 handle followed by 1.5254, high July 31st.
In the opinion of Valeria Bednarik, Currency Strategist at FXstreet.com, “The 4 hours chart maintains a clear upward tone, with indicators heading higher in positive territory, and 20 SMA about to cross to the upside 200 EMA, both around 1.5260. Further gains should be expected with a price’s acceleration above 1.5410 required to confirm the move”.
Market consensus expects a dovish tone from the central bank, opening the door for further weakness in the sterling. The GBP/USD is now trading in red and bouncing off lows after putting the 1.5300 key support to the test. Key levels to watch post-BoE are 1.5392, Tuesday’s highs and then 1.5416, high July 26th. On the downside, the initial support aligns at the psychological 1.5300 handle followed by 1.5254, high July 31st.
In the opinion of Valeria Bednarik, Currency Strategist at FXstreet.com, “The 4 hours chart maintains a clear upward tone, with indicators heading higher in positive territory, and 20 SMA about to cross to the upside 200 EMA, both around 1.5260. Further gains should be expected with a price’s acceleration above 1.5410 required to confirm the move”.