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The price of the GBPUSD could continue to remain bullish ahead of the Bank of England announcement. The BoE has held a hawkish tone in the past two previous meetings and will likely continue to remain hawkish. This could have a positive impact on the price and offer some long opportunities. 

We’re going to talk about the GBP/USD ahead of the Bank of England rate statement.

The Bank of England has been upbeat about the GB Pound in the past two rate announcements. We’re expecting the same thing from the Central Bank despite it being hawkish.

Nothing’s really changed for the UK at the moment. We’re expecting the hawkish tone will remain, presenting a decent buying opportunity, especially since the price is far from the key 1.41 level. I think that the GBP/USD price may recover and we could see it rebound towards the 1.41 level. If that happens, then we could see a potential trading opportunity.

The daily timeframe shows the price in a retracement phase after breaking out of the head and shoulders pattern. If the price continues the downward move, we should expect a retest of the major swing level at 1.4100.

The daily timeframe shows the price in a retracement phase after breaking out of the head and shoulders pattern. If the price continues the downward move, we should expect a retest of the major swing level at 1.4100.

Four-hour timeframe

In the four-hour timeframe, the price is making a nice uptrend. We’re getting higher highs and higher lows. The price recently retested the previous structure highs and is now forming a bullish engulfing candle. If that closes bullish, you could look for a long entry with your target at the 1.41 area.

The four-hour timeframe currently shows the price making higher highs and higher lows in line with the higher timeframe retracement phase.

The four-hour timeframe currently shows the price making higher highs and higher lows in line with the higher timeframe retracement phase. If the price forms a bullish engulfing pattern, we could look for long opportunities to continue.

You could also watch the Asia session for range breakouts. The market formed a range in the Asia session. We recently experienced volatility, and now, the price is breaking out to the upside of the range. We could look for the price to continue to break out, trade above the Asia session highs, then retest to look for long opportunities.

Alternatively, the price is breaking out of the Asia session highs. If the price remains above this level, we could look for a retest before looking for a reversal pattern to the upside.

Alternatively, the price is breaking out of the Asia session highs. If the price remains above this level, we could look for a retest before looking for a reversal pattern to the upside.

The risk for the GBP/USD remains below the Asia session lows, a break below would invite sellers to the market. That could also be another alternative for the GBP, as we expect the Bank of England to remain hawkish in their tone.

If they don’t and surprise the markets instead, then we could see a break below the lows. However, we think that the price may continue to push higher.

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