GBP/USD: Bank of England set to keep rates ahead of next month’s elections
Relatively positive technicals look to get shelved with traders holding opposite bias ahead of fundamental event.
GBP/USD Technical analysis, overview, strategies, and levels
It’s a fundamental day for the pound and all GBP pairs as the Bank of England (BoE) is set to announce its monetary policy with expectations to keep rates on hold at 0.75%, as the central bank is unlikely to make any significant changes ahead of elections and more likely follow in the common theme that central banks globally have been reiterating regarding weakening global demand and trade uncertainties. The pound underperformed against most of the FX majors yesterday, but given overall movement was sedate meant that that underperformance was limiting as its price stalls at the highs. But technicals mean little in the face of significant fundamental forces.
| Current Technical Overview | Consolidation - Positive Bias |
| Technical Overview Conformist Strategies | Sell 1st Resistance After Reversal, Buy 1st Support At/Before Price |
| Technical Overview Contrarian Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 1.3061 |
| 2nd Resistance | 1.3020 |
| S/L for 1st Resistance | 1.2979 |
| 1st Resistance | 1.2937 |
| Relative Starting Point | 1.2855 |
| 1st Support | 1.2773 |
| S/L for 1st Support | 1.2731 |
| 2nd Support | 1.2690 |
| S/L for 2nd Support | 1.2649 |
IG client and CoT sentiment for GBP/USD
Going into today’s event retail bias is at a modest majority long 55%, while institutional bias as per the latest CoT (Commitment of Traders) report is a majority short 64% and dropping on the extreme short bias it experienced only a couple weeks before that.
GBP/USD Chart with retail and institutional sentiment
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