GBP/USD yesterday found support near the 50% fib level as inflation in the US fell more than expectations. The pair extended gain on Wednesday ahead of the Bank of England (BoE) and the Federal Reserve monetary policy decisions. Cable might test the 1.6478 support in near future if the Fed reduces the stimulus on the third meeting in a row.
Technical Analysis
As of this writing, cable is being traded near 1.6600. Resistance can be seen near 1.6688, the 23.6% fib level and the high of the shooting star daily candle, ahead of 1.6764 which is the channel resistance of the rising wedge formation. A daily closing above the wedge shall open doors for the new multi-year highs above 1.6850.
On the downside, the pair is expected to find support around 1.6538, the 50% fib level, ahead of 1.6478 which is the channel support of rising wedge on the daily chart. A daily closing below the wedge shall push the pair into relatively stronger bearish trend, opening doors for 1.6390, the 76.4% fib level and then 1.6250, a historical resistance-turned-support for the pair.
BoE Monetary Policy
BoE is due to release the minutes from the monetary policy meeting today. Hawkish comments from the policymakers may spur huge rallies in cable. Investors will be eyeing BoE stance on the first rate hike after RBNZ landmark decision to increase the cash rate from 2.50% to 2.75%. Moreover, the central bank will also announce the Monetary Policy Committee (MPC) decision on the benchmark interest rate. According to the unanimous forecast of different analysts, all nine members of the committee are likely to vote for the unchanged rate.
Fed Monetary Policy
The two-day Federal Open Market Open Committee (FOMC) meeting is going to conclude today in Washington. The Federal Reserve will announce the decision of FOMC policymakers on the interest rate and the stimulus. Analysts have predicted no change in the cash rate however the bank may reduce the QE by $10 billion.
US Inflation Report
Inflation in the US declined to 1.1% in February as compared to 1.6% in the same duration of the year before, analysts had predicted 1.2% decline so the data downbeat the expectations. However, Core Inflation, relatively more accurate gauge for inflation, remained steady at 1.6% in February compared with the same reading in the same duration of the year before, the core inflation report was in line with the expectations.
Capital Trust Markets is an online Forex Brokerage, offering a flawless trading environment to traders of all types. The world class trading infrastructure - backed up by advanced trading tools and cutting edge trading software and technology - is combined with award winning customer support to provide a highly successful blend of customized trading solutions.
Technical Analysis
As of this writing, cable is being traded near 1.6600. Resistance can be seen near 1.6688, the 23.6% fib level and the high of the shooting star daily candle, ahead of 1.6764 which is the channel resistance of the rising wedge formation. A daily closing above the wedge shall open doors for the new multi-year highs above 1.6850.
On the downside, the pair is expected to find support around 1.6538, the 50% fib level, ahead of 1.6478 which is the channel support of rising wedge on the daily chart. A daily closing below the wedge shall push the pair into relatively stronger bearish trend, opening doors for 1.6390, the 76.4% fib level and then 1.6250, a historical resistance-turned-support for the pair.
BoE Monetary Policy
BoE is due to release the minutes from the monetary policy meeting today. Hawkish comments from the policymakers may spur huge rallies in cable. Investors will be eyeing BoE stance on the first rate hike after RBNZ landmark decision to increase the cash rate from 2.50% to 2.75%. Moreover, the central bank will also announce the Monetary Policy Committee (MPC) decision on the benchmark interest rate. According to the unanimous forecast of different analysts, all nine members of the committee are likely to vote for the unchanged rate.
Fed Monetary Policy
The two-day Federal Open Market Open Committee (FOMC) meeting is going to conclude today in Washington. The Federal Reserve will announce the decision of FOMC policymakers on the interest rate and the stimulus. Analysts have predicted no change in the cash rate however the bank may reduce the QE by $10 billion.
US Inflation Report
Inflation in the US declined to 1.1% in February as compared to 1.6% in the same duration of the year before, analysts had predicted 1.2% decline so the data downbeat the expectations. However, Core Inflation, relatively more accurate gauge for inflation, remained steady at 1.6% in February compared with the same reading in the same duration of the year before, the core inflation report was in line with the expectations.
Capital Trust Markets is an online Forex Brokerage, offering a flawless trading environment to traders of all types. The world class trading infrastructure - backed up by advanced trading tools and cutting edge trading software and technology - is combined with award winning customer support to provide a highly successful blend of customized trading solutions.
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