June 22 2021
The main event for the GBP is Thursday’s Bank of England monetary policy meeting, which The Forex market is hoping to see the BoE talk up the UK economy, and hint at early interest rate rises. This optimistic view of the UK economy may limit the GBP’s downside ahead of Thursday.
Yesterday the GBP attempted to break support at 152.00, this clearly failed and led to a short covering rally that gained considerably momentum to hit the key resistance at 153.60/80.
If the GBPJPY can break the resistance at 153.60/80, you will see the GBP advance to 154.40 and possibly 155.20 in extension.
Although the first attempts at 153.60/80 has also failed, a drop back towards 153.00 support is possible. Should 153.00 support be broken, more buyers will be found at 152.60/40 and then 152.00.
Having held support just below 1.3800 yesterday the Pound was able to advance to through resistance at 1.3880 and get close 1.3940 the next barrier of resistance ahead of 1.4000/20.
So far 1.3940 is proving tough to break and we could see the GBP slip back to 1.3880/1.3860 before making another attempt on the upside.
If 1.3860 is broken then I would expect to see renewed selling pressure, which would see the GBP test yesterdays lows at 1.3800.
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