GBP price, news and analysis:
- GBP / USD the Monetary Policy Committee of the Bank of England is unlikely to be far ahead of Thursday’s policy statement.
- However, after the release of psychological resistance at 1.40 at the end of last week, it may slip further in the near future.
GBP / USD withdraws resistance
Rejection GBP /USD 1.40 of the level of psychological resistance on Thursday and Friday last week, the pair could have been a turning point and it would not be surprising if it eased further before the forthcoming meeting of the Bank of England’s Monetary Policy Committee on Interest Rate.
GBP / USD Price chart, Everyday Period (January 20 – August 3, 2021)
Source: IG (Click for larger image)
However, as the chart above shows, past trend resistance may now act as support, potentially limiting losses ahead of the MPC meeting, where policymakers are likely to reiterate that they will not tighten policy yet.
Meanwhile, the United Kingdom spat on France, which was sidelined when the United Kingdom eased entry requirements for most European visitors, could damage sentiment. On the other hand, in attempt to curb The United Kingdom ‘s“tense“ contact tracking alerts, Government has limited the parameters of the national health service telephone application Covid-19 – a potential positive for the UK economy and thus for the pound.
– Written by Martin Essex, analyst
Feel free to contact me Twitter @MartinSEssex