On the eve of the meetings of the Bank of England and FOMC trading instruments, including GBP/USD are traded multidirectionally in narrow price ranges. On Tuesday buyers are trying to win out of the previous losses but don't demonstrate any significant activity.
The Bank of England is expected to raise its rate by 50 basis points to 2.25% on Thursday. This lags far behind the actions of the Fed, where the rate is raised at every meeting. Analysts expect U.S. federal funds costs to rise to 4.25-4.50% by the end of the year. On Wednesday, the FOMC is likely to announce a 75 basis point monetary tightening.
GBP/USD Technical Analysis
The Bollinger indicator on the daily TF has shifted horizontal.
The MACD indicator is in the negative range, but began to show signs of growth towards the zero line, preserving a sell signal.
The oscillator stochastic from the bottom up broke through the 20% boundary, came out of the oversold area and continues to grow.
Candlestick patterns, chart patterns and technical indicators do not give unambiguous signals for market entry.
Upon a confident breakdown of resistance at 1.1478, we form long positions with Take Profit at 1.1600. Stop-loss is set at 1.1404.
If it gets below 1.1404, we return to selling with Take Profit at 1.1300. Stop-loss is placed at 1.1410.
If you are interested in GBPUSD analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the market. The latest GBP/USD forecasts and signals contain support and resistance levels, as well as stop-loss levels.