6 Aug 2015
GBP/USD: Bulls in control on “Super Thursday”
FXStreet (Mumbai) - The GBP/USD bulls appear to be in control, ensuring the spot stays above 1.56 ahead of the major events – BOE rate decision, minutes, quarterly inflation report (QIR) and Carney’s press conference.
Split vote on the policy decision expected
Speculation is growing over a split vote on the policy decision. The investment bank Goldman Sachs expects the outcome to be slightly positive for Sterling with “two – possibly three – MPC members will have voted for a rate rise”. Most of the investment banks are betting on two or three members voting in favour of the rate hike.
The UK industrial production for June is likely to be overshadowed by the rate decision and the quarterly inflation report (QIR). Apart from the BOE events, the spot could also be influenced by the movement in the 2-year US Treasury yield.
GBP/USD Technical Levels
The spot currently trades around 1.5620. The immediate resistance is located at 1.5639 (38.2% of June rally), followed by a major hurdle at 1.5690-1.5700. The immediate support is located at 1.56, under which the spot could target 1.5565 (50-DMA).
Split vote on the policy decision expected
Speculation is growing over a split vote on the policy decision. The investment bank Goldman Sachs expects the outcome to be slightly positive for Sterling with “two – possibly three – MPC members will have voted for a rate rise”. Most of the investment banks are betting on two or three members voting in favour of the rate hike.
The UK industrial production for June is likely to be overshadowed by the rate decision and the quarterly inflation report (QIR). Apart from the BOE events, the spot could also be influenced by the movement in the 2-year US Treasury yield.
GBP/USD Technical Levels
The spot currently trades around 1.5620. The immediate resistance is located at 1.5639 (38.2% of June rally), followed by a major hurdle at 1.5690-1.5700. The immediate support is located at 1.56, under which the spot could target 1.5565 (50-DMA).