InstaForex

September 20, 2021

What are the GBP/USD Trading Closing Expectations Ahead of Next Week's BOE Meeting?

 The pound sterling was seen still moving under pressure towards weekend trading despite UK inflation data published on Wednesday recording a 9 -year high above expectations of a rise.


The rise in inflation is also seen to influence the decision of the central bank of England (BOE) to tighten policy at the monetary policy meeting next week.


The significant strengthening of the US dollar in Thursday's trading also overshadowed the movement of the Pound which is still looking for an early rhythm of strengthening its value.




On the chart of the GBP/USD pair, the price was seen showing a slight increase in the European session yesterday to the level around 1.38400 before the price plunged around 75 pips below the support zone of 1.38000.


Reaching the level of 1.37700 the price is seen rising again until the end of the New York session to the zone of 1.38000 which is a resistance to the price increase.


Price movements slowed in the zone until the continuation of the Asian market session on Friday.



Heading into the European session, the price is trying to break the 1.38000 level but is seen to be struggling to maintain the momentum as investors expect the US dollar to continue strengthening in the New York session.


The price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart also still signals for bearish movement.


The successful decline continued before the close of trading this week is expected to head to the support zone at 1.37000.


If the rally is successfully re -exhibited, investors will see if the price is able to break the MA50 barrier for a trend change signal.


A higher rise will re -test the resistance zone at 1.39000 after the price managed to cross the level slightly on Tuesday and hit the latest 6 -week high.