Trade Of The Day: GBPUSD Further Corrective Gains

GBPUSD – Another leg up to test medium term resistance

No change in policy is expected at the BoE meeting. It was not long ago that BoE Governor Mark Carney noted “The prospect of sustained momentum in the U.K. economy and the gradual firming of underlying inflationary pressure will likely put the decision as to when to start the process of gradual monetary policy normalization into sharper relief around the turn of this year.” But a couple of days afterward, his Chief Economist expressed doubts

Froma technical perspective, near term yesterdays close above 1.53 opens 1.5450 as the next upside objective. While intraday downside reactions are support towards .15240 near term upside remains in tact,  a failure here would target a retest of recent lows.

Trade Idea

  • Watch for any pre or post BOE meeting release reaction to test 1.5230/50 prior resistance as support, monitor intraday reversal patterns to set longs leaning against 1.5150 targeting a test of equality corrective resistance 1.5450

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