GBPUSD rises 0.65% ahead of Bank of England policy hearings

GBPUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.65%	87.8 Pips
Week to-date	0.76%	101.7 Pips
June	0.76%	101.7 Pips

Upcoming key events (London Time)

Tue 10:15 AM GBP Bank of England Monetary Policy Report Hearings

What happened lately

There are no notable economic events currently from the UK or the US. However, attention is directed towards the upcoming event where the Bank of England will conduct its Monetary Policy Report Hearings. This event, scheduled for Tuesday at 10:15 AM, is of significant interest as it may provide insights into the central bank’s views on economic conditions and monetary policy stance. The Bank of England’s assessment and potential signals regarding future interest rate adjustments could impact currency valuations, making it a crucial event for market participants and economic observers.

On Monday, the GBPUSD currency pair experienced a notable increase, rising by 0.65% to settle at 1.35391. This recent appreciation in the British Pound against the US Dollar can be attributed to varying factors, possibly influenced by diminishing concerns or positive sentiment towards the UK economic outlook. Market participants may be speculating about the outcomes or insights to be gained from the upcoming Bank of England hearing, foreseeing possible measures or reassurance that might bolster economic confidence in the UK.

Considering the upward movement in GBPUSD and the upcoming Bank of England Monetary Policy Report Hearings, there could be further volatility surrounding the currency pair. If the report hearings favor a hawkish tone — indicating optimism or potential rate hikes — this might boost the Pound, leading to further gains against the US Dollar. Conversely, any dovish sentiment — hinting at a cautious approach due to economic uncertainties — could weaken the Pound. For the immediate future, traders and analysts will be closely monitoring any statements or cues from the hearings, understanding their implications for currency valuations and aligning their trading strategies accordingly.

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What can we expect from GBPUSD today?

GBPUSD on Monday rose 0.65% to 1.35391. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for GBPUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.35824 with break above could target R2 at 1.36257 or figure level area. While towards the downside, we are looking at daily low of 1.34500 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.35595 may suggest continuation after recent positive movement.

For the week to-date, take note that GBPUSD is mixed as compared to the prior week.

Key levels to watch out:

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