GBP: All Eyes on The Bank of England

Negative trading continues to dominate the movements of the pound sterling against its American counterpart within the expected bearish context, touching the first target of 1.3640, recording its lowest level at 1.3610, near the psychological support level of 1.3600.

On the technical side today, we notice the continuous negative signs on the stochastic indicator, accompanied by the negative pressure coming from the 50-day moving average, which continues to form a hard obstacle.

Therefore, we keep our negative outlook as it is, targeting 1.3600, and it should be noted that breaking the mentioned level will extend the pair’s losses so that we will be waiting for 1.3665, and then 1.3520.

Trading above 1.3685, and most importantly 1.2720 negates the bearish scenario,, and we may witness a bullish track with its initial target of 1.3765, and its gains may extend later to visit 1.3820.

Note: BoE rate decision is due today and may cause high volatility. 

S1: 1.3600	R1: 1.3685
S2: 1.3565	R2: 1.3725
S3: 1.3520	R3: 1.3765