GBP/USD hangs near multi-week low, oscillates in a range just above 1.2700 ahead of BoE
The GBP/USD pair enters a bearish consolidation phase during the Asian session on Thursday and oscillates in a narrow range just above a nearly one-month low, around the 1.2680 region touched the previous day. Spot prices currently trade around the 1.2700 mark as traders seem reluctant to place aggressive bets and prefer to wait for the latest monetary policy update from the Bank of England (BoE), due later today.
A sharp deceleration in the headline UK CPI, to the 7.9% YoY rate in June from the 8.7% previous, might force the UK central bank to revert to a smaller 25 bps lift-off. The move will push the benchmark rate to 5.25%, or the highest level since December 2007. That said, some investors are anticipating another 50 bps rate hike as the inflation is still significantly above the BoE's 2% target. Hence, the focus will remain glued to the accompanying monetary policy statement and the post-meeting press conference. Against the backdrop of the recent swings in expectations about the future rate-hike path, the outlook will play a key role in influencing the British Pound and provide a fresh directional impetus to the GBP/USD pair. Read more...
GBP/USD Price Analysis: Aims toward 1.2700 after a break of ascending channel
GBP/USD breaks below the bottom of an ascending channel, ahead of the Bank of Englan’s (BoE) monetary policy decision on Thursday, as the pair aims toward the 1.2700 psychological figure. As the Asian session commences, the GBP/USD is exchanging hands at 1.2715, posting minuscule gains of 0.04%.
The GBP/USD is neutral to downward biased, as the daily chart depicts, as the pair dropped on Wednesday’s session below the 50-day Exponential Moving Average (EMA) at 1.2742. In addition, the GBP/USD extended its fall below the bottom of the ascending channel, opening the door for further losses. That, alongside the Relative Strength Index (RSI) indicator turning bearish, could pave the way for a drop below 1.2700. Nevertheless, the three-day Rate of Change (RoC) portrays a slight divergence with price action, suggesting that the 1.2700 psychological level might hold in the near term. Read more...
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