Following a very volatile week for GBP/USD, we’ll have today at 08:15 GMT a speech from London by MPC member Martin Weale, whom it’s expected to talk about Brexit, and we’ll see if he gives further hints about a rate hike or cut in August. It would be interesting to see if Weale can provide that because Cable was profoundly affected by recent positive US economic data that strengthened the US dollar, but bear in mind that the Bank of England noted about low inflation levels.
The technical scenario for the pair at H1 chart is giving a strong support located around the 1.3103 level, where we can found the 200 SMA. Above that zone, we can expect a rebound towards the 1.3317 level and a breakout above it will expose the 1.3458, which was a significant resistance during last week, and that will happen if Weale’s speech is more hawkish than expected. In the dovish scenario, GBP/USD should consolidate before the 1.3103 to test the historical lows below the 1.2850 mark.
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Origin: FX BAZOOKA
