It’s a tough call. If it delivers 75bps, this will be the first 75bps in over 30 years! With the Monetary Policy report also due the Pound is set for a volatile session.
Should the BOE deliver the anticipated 75bps it will show commitment to fighting the high inflation rate but risk the recession deepening, the more cautious anticipate a 50bps raise.
The pound is already struggling ahead of the announcement and appears to have already peaked ahead of the 1.1760 July low (recent October high has been 1.1645). Nearby supports are 1.1060, the 21st October low, 1.0923, 12th October low then 1.0538 the 28th September low. We also have a weak sell signal on the DMI to add to Sterling’s woes.
While capped by 1.1760, Sterling looks set to struggle.
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The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current Disclaimer:
opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
Should the BOE deliver the anticipated 75bps it will show commitment to fighting the high inflation rate but risk the recession deepening, the more cautious anticipate a 50bps raise.
The pound is already struggling ahead of the announcement and appears to have already peaked ahead of the 1.1760 July low (recent October high has been 1.1645). Nearby supports are 1.1060, the 21st October low, 1.0923, 12th October low then 1.0538 the 28th September low. We also have a weak sell signal on the DMI to add to Sterling’s woes.
While capped by 1.1760, Sterling looks set to struggle.
Disclaimer
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current Disclaimer:
opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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