My forecast worked a treat. The pound/dollar dropped to 1.5360 from the LB. The pound didn’t fall too much because the euro/pound was holding it back.
Today’s key event for the financial market is the Bank of England meeting. Forecasters expect the base rate to be left unchanged at 0.5%. The results of the MPC voting and what Carney has to say afterwards will bear importance for traders.
It would be quite risky to trade pounds this afternoon. The rate could quite easily return to 1.5420 and then fall to 1.5305. Taking dollar growth throughout the market into account, I expect to see the pound weaken to 1.5305.
The stochastic has flipped upside down which is a signal to sell. I reckon we’ll see the GBP/USD reach 1.5285.
The GBP/USD has been trading in a sideways for four weeks. I think we’ll see a break in 1.52 with a 1.5080 target.