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GBP/USD subdued ahead of BoE's decision

© Dukascopy Bank SA
"We expect no change from the BoE at Thursday's meeting and no signals that a change is imminent either."
- Bank of America Merrill Lynch (based on PoundSterlingLive)

Pair's Outlook
The British currency extended its bearish trend for another day yesterday, but with the immediate support cluster limiting the losses just above 1.44. The GBP/USD is now under the risk of breaching the monthly S2, with a sell-off towards the six-year low likely to be triggered afterwards. However, a the Pound is expected to react positively on today's interest rate decision and reverse the trend, after having fallen for more than two weeks. Immediate resistance, namely the weekly S1, does not play an important role in limiting the gains today; thus, the 1.45 level might be retaken.

Traders' Sentiment
Bulls remain strong, as 63% of all open positions are long. The share of sell orders remains unchanged at 57% for the third day in a row.

© Dukascopy Bank SA


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