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SpanishSterling Slightly Lower Ahead of BoE’s Policy Rate Decision, High Volatility Likely in GBP Parity; June 16, 2022
U.K.’s Interest Rate Decision & Monetary Policy Statement
Today U.K. has scheduled to release Interest Rate Decision at 1100 GMT/1630 IST. The rate decision is usually priced in the market, so it tends to be overshadowed by the Monetary Policy Summary, which is focused on the future. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. In addition, Monetary Policy Summary discusses the economic outlook and offers clues on the outcome of future votes.
Let’s see how GBP has reacted during the previous data release:
May 05:
March 17:
Technical View:
GBP/USD:
- The sterling weakens ahead of BoE’s Interest rate decision and hovers around $1.2100 mark.
- Today pair made intraday high at $1.2189 and low at $1.2058 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $1.2178 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.2090 will check further supports.
|
Supports
|
Resistances
|
|
$1.2055
|
$1.2199
|
|
$1.2021
|
$1.2226
|
|
$1.2001
|
$1.2250
|
|
$1.1978
|
$1.2272
|
|
$1.1940
|
$1.2296
|
Take a look and do trade wisely!
Good Luck
TP Global FX Research Team
With a decade of Forex Market insight, TP Global FX Research Team delivers you the Market Insight that boosts your Trading Skills