Cable is trading near resistance and with British Prime Minister stating that “the withdrawal agreement is virtually agreed” and ruled out a second vote. This has inspired some confidence after reports last week that 80 Tory MPS rejected her ‘Chequers’ proposal. Cable rallied for the first half of the week and with a lot of economic data coming out today this could either send Cable lower or breaking through major resistance levels.
On the 1 HR time-frame, we have a flag formation and I am sure with good news we will break through resistance. Bad data will send lower to the 130 region.
GBPAUD Daily Outlook
Currently forming a possible double top formation and now trading near the neckline. A break and close below will either see the pair fall to 1.80500 level or break through the top pattern and trade higher to 1.84700
GBPCAD Daily Outlook
Yesterday saw some good data out of the loonie which printed a big bearish inside bar on the daily and possibly confirmed the double top on the 4HR. Currently, the price is trading on trendline support and the opening of the London session could push this pair lower 1.69580
GBPJPY Daily Outlook
BoJ trade balance reports were better than expected which pushed price lower. Currently, this pair is trading near a significant resistance level. A break of the trendline support will push this pair to the 146.271 region
GBPCHF Daily Outlook
Currently trading with a sideways flag pattern near the resistance levels. A break and full candle close above the resistance level will see this pair trade higher for the rest of the week. Bad data could push this pair 1.26254 level
The Bank of England
The Bank of England is the central bank of the United Kingdom. It was established in 1694 and was privately owned in the beginning, the Bank was nationalized in 1946 so now is completely owned by the UK government. BOE’s main reason to be is to maintain monetary and financial stability in the country. Some of its other tasks are producing secure bank notes, operating asset purchase facility and keeping the inflation low and stable.BOE Official Website, on Twitter and Facebook
The European Central Bank (ECB)
The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is the one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council, and the General Council. Mario Draghi, a member of the Executive Board, is also the President of this organism.
The Federal Reserve Bank (Fed)
The Federal Reserve System (Fed) which is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System’s structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.