GBPUSD Forecast and Technical Overview
Super Thursday for Pound is over. BoE kept the monetary policy unchanged.
BoE, at the same time, decided to downgrade this year growth’s forecast from 1.7% to 1.2%, as a result of mounting Brexit uncertainty. Bank of England Governor Carney later offered a speech, warning that the UK faces the weakest growth since the financial crisis, adding that a no-deal Brexit implies negative growth quarterly basis. He also said that the central bank expects business investment and economic growth to soften in the near term but later pick up, once the Brexit “fog clears.” It was not doom and gloom: Carney said that a no-deal Brexit is not the most likely scenario and that the market should not prepare for further rate hikes, either for rate cuts. All in one, market players believe that, with a deal Brexit, the central bank will pull the trigger, the reason beyond an over 100 pips bounce in GBPUSD.
However, after testing 1.30000, optimistic bull wave ended with a retracement towards 1.29500
GBPUSD remains mostly unchanged near 1.2950 during early Friday before the UK Prime Minister Theresa May reaches Dublin to meet her Irish counterpart and discuss the problematic border plan.
Technically; Cable is trading in a descending channel on the H4 Chart, below EMA 50 in the lower Bollinger Band. RSI has downside rooms. The shorter-term bearish pressure will continue as long the pair stays below 1.30000.
The intraday targets of the pair are 1.28800 and 1.28170. Stop Loss is H4 closing above 1.30000
We will update our midterm forecast and publish at the weekend.
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GBPUSD: 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 securities. You should do your own thorough research before making any investment decisions. Chartreaderpro 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 Forex 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