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SpanishSterling Remains Volatile Ahead of U.K.’s Interest Rate Decision, 60+ PIP Volatility Likely in GBP Parity; Aug 05, 2021
U.K. BOE Interest Rate Decision
The key event for the day will be U.K. Interest Rate Decision and Monetary Policy Statement. It’s among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes. Short term interest rates are the paramount factor – traders look at most other indicators merely to predict how rates will change in the future.
Market is not looking for any changes in BOE interest rate but Delta variant virus risk may put negative pressure on the economy. On the other side, thanks to a successful vaccination program, the BoE may start to show more signs of optimism and thus underpin the currency. Let us wait for few hours to see the reaction of the BOE Monetary Policy Statement.
Let’s see how GBP has reacted during the previous data release:
June 24:
May 06:
Technical View:
GBP/USD:
- The sterling remains volatile ahead of BOE’s Interest Rate Decision and hovers around $1.3900 mark.
- Today pair made intraday high at $1.3898 and low at $1.3872 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1.3912 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.3877 will check further supports.
| SUPPORTS | RESISTANCES |
| $1.3877 | $1.3912 |
| $1.3850 | $1.3940 |
| $1.3822 | $1.3958 |
| $1.3801 | $1.3982 |
| $1.3776 | $1.4022 |
Take a look and do trade wisely!
Good Luck
