Support
0.8934 (monthly Fib pivot + rising trend line support)
0.8881 (Oct 21 low)
0.8752 (monthly Fib pivot S1)
Resistance
0.9049 (previous day’s high)
0.9115 (monthly Fib pivot R1)
0.9142 (Oct 11 high)
Comments - BOE is likely to confirm what the market already knows - there is little room left for a further cut in the interest rates. The central bank is widely expected to revise its short-term inflation and growth forecasts higher and long-term growth forecasts lower. Unless there is dovish surprise, the British Pound could move higher, consequently, the rising trend line could be put to test. A daily close below the same would signal trend reversal. In case, there is a dovish surprise, the pair could revisit highs around 0.9150.
0.8934 (monthly Fib pivot + rising trend line support)
0.8881 (Oct 21 low)
0.8752 (monthly Fib pivot S1)
Resistance
0.9049 (previous day’s high)
0.9115 (monthly Fib pivot R1)
0.9142 (Oct 11 high)
Comments - BOE is likely to confirm what the market already knows - there is little room left for a further cut in the interest rates. The central bank is widely expected to revise its short-term inflation and growth forecasts higher and long-term growth forecasts lower. Unless there is dovish surprise, the British Pound could move higher, consequently, the rising trend line could be put to test. A daily close below the same would signal trend reversal. In case, there is a dovish surprise, the pair could revisit highs around 0.9150.
