BOE Data Should Give Direction for gbpusd

Yesterday saw low volatility in gbp/usd. 53 pips is a very low daily range for the pair. You know how volatile cable can get. It means directional move is coming. We have a good catalyst for that and that is Bank of England interest rate decision that is due at 11:00 GMT today. Of course, nobody expects an increase (to say nothing of a cut). If that happened we would probably see a huge gap in price of the exchange rate of the pair. 

However, any bullish or bearish signs in the wording of the statement can send the price to the sky or to hell. You may see from the chart below that resistance starts at 1.5425 that marks the low of the 7^th of August. Pound bounced of that level at that point and formed a nice bullish candle. It may play as resistance when the release comes out. Intra day support is at 1.5338 (today low). 

Next level of support would be 1.5300 area and resistance would be around 1.5490-1.5500 area. If 1.5490 is overcome the door to 1.5800 (the high of 25^th of August) would open up. Bias is slightly bullish right now. 

British Pound Starts the Week on a Bullish Tone

After two weeks of falling, gbp/usd started the week on a positive note. On Sunday open it gaped down, but quickly came up and did not break lower anymore. It moved towards the low during European session, but formed a bullish w pattern on 15 minute chart and is rising now. You may see that intra day resistance is at 1.5273 level (Friday high). Intra day support starts at an even number of 1.5200 with key support being at 1.5160 (Sunday open low). 

There is no key fundamental data today or tomorrow that might impact exchange rate of the pair. On Wednesday GBP Industrial production is to be released at 08:30 GMT. Even more important data is coming on Thursday at 11:00 GMT. Bank of England interest rate decision is scheduled at that time. I have a hunch that US dollar bullish trend might be over for now and British Pound will strengthen from now on. On Friday inflation numbers from UK will also be carefully watched by market participants. Later in the day traders will also get USD U. of Michigan Confidence data, which should not have big influence on the pair.