On Thursday, all GBP pairs will adjust to the new UK monetary policy, as at 11:00 GMT the Bank of England is set to publish its Monetary Policy Summary and set a new GBP Official Bank Rate. The central bank is expected to hike 0.50% from 1.75% up to 2.25%. The English central bank has been steadily doing 0.50% hikes. However, the GBP has continued to decline, compared to the USD.
On Friday, at 08:30 GMT the UK Flash Manufacturing and Services Purchasing Managers Indices are expected to impact the value of the GBP.
Later on, at 13:45 GMT, the US PMIs are scheduled to be release. However, in most cases the market ignores this event.
GBP/USD short-term view
A resumption of the broader decline is expected to find minor support in the weekly S1 simple pivot point at 1.1267, before looking for support in the 1.1250, 1.1200 and 1.1150 levels. Further below, note the weekly S2 simple pivot point at 1.1114 and the 1.1100 mark.On the other hand, a recovery of the Pound against the US Dollar is set to be slowed down by the 50 and 100-hour simple moving averages. Afterwards, the 1.1350 mark is highly likely once again going to act as resistance. Higher above, take into account the 1.1400 and 1.1450 levels.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the currency pair has pierced the support of the 2020 March low level at 1.1415. The event signals that new low levels could be reached. Note that the lower trend line of the 2022 channel down pattern passes the 1.1000/1.1200 range.Daily chart
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Traders are long with buy orders
On Wednesday, before the FOMC release, traders were bullish, as 66% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 52% to buy the GBP/USD.
On Thursday, before the Bank of England, the sentiment was 70% long and pending orders were 75% to buy.
On Wednesday, before the FOMC release, traders were bullish, as 66% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 52% to buy the GBP/USD.
On Thursday, before the Bank of England, the sentiment was 70% long and pending orders were 75% to buy.