My forecast worked a treat. The pound/dollar dropped to 1.5360 from the LB. The pound didn’t fall too much because the euro/pound was holding it back. Today’s key event for the financial market is the Bank of England meeting. Forecasters expect the base rate to be left unchanged at 0.5%. The results of the MPC voting and what Carney has to say afterwards will bear importance for traders.
It would be quite risky to trade pounds this afternoon. The rate could quite easily return to 1.5420 and then fall to 1.5305. Taking dollar growth throughout the market into account, I expect to see the pound weaken to 1.5305.
GBPUSD 1 Hour Chart