GBPUSD Up Ahead of Bank of England Governor Speech

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GBPUSD Up Ahead of Bank of England Governor Speech

GBPUSD Up – Daily Chart

9:30 AM (EST) Update: GBPUSD Up Ahead of Bank of England Governor Speech

GBPUSD Up on Daily: Rallying above Ichimoku Cloud, pushing up towards the 38% Fibonacci level 

GBPUSD Up – Technical Analysis

After failing to break below the 23% Fibonacci, the GBP/USD is now skyrocketing towards the 38% Fibonacci  on the forex dance floor. The RSI is heading up above the neutrality area.

Fundamental Points

PIMCO warned yesterday that the UK needs to get the EU referendum out of the way quickly so that government can concentrate on other risks to the UK economy. The logic behind their call is simple; “the loner the EU referendum is with us, the bigger the risk that it hits business investment”.

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PIMCO weren’t the only ones to mention the referendum yesterday, as Nicola Sturgeon, currently in America boosting her international profile, told the Wall Street Journal that David Cameron must keep Britain in the EU and also develve more power to Holyrood if he wants to avoid another Scottish referendum. Ms Sturgeon’s four day tour of the US is apparently winning hearts and minds in America, with her appearance on the Daily Show going down extremely well.

The UK’s largest bank has said they wil lcut 25,000 from their global workforce. HSBC will use natural attrition in the most part to slim the numbers, but will be cutting as much as 20% of it’s 48,000 strong UK workforce – a big dent. As well as 25,00 job cuts, HSBC will sell business units in Turkey and Brazil almost doubling the reduction in headcount.

Despite the lower-than expected UK manufacturing production beginning of the London Session, the positive industrial production data helped Mr. British Pound jump high on the forex dance floor and keep on moving up well through the New York session when the NIESR GDP Estimate is about to get released. Later in the day at 9 PM Bank of England (BoE) Governor Carney will make a statement that could be a make-or-break for the Cable.

Alternative Scenario: If the pair suddenly goes nuts and break below 1.5220 look for a reversal targeting 1.51 and 1.50 in extension.

Where to set your stops and limits:

Support Levels Turning Point Resistance Levels
1.50 1.5590 1.5880
1.48 1.5220 1.6185

*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.