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Trade of the Week: GBPUSD primed for further upside?


By ForexTime 

This morning, the GBPUSD grabbed our attention after it hit a new 2023 high.

The sterling has been the best-performing G10 currency so far this year, with a gain of roughly 4.7% versus the dollar. This is due to both fundamental and technical factors.

Fundamentally, the pound is supported by a stronger dollar, BoE expectations of a rate hike, and encouraging UK economic data. Looking at the technicals we can see that prices are strongly bullish in the weekly timeframe. Next major resistance levels are around the Simple Moving averages of 100 and 200 weeks.

This could be a volatile week for the GBPUSD and here are 4 reasons why…

  1. BoE Super Thursday  

Thursday 11th of May, the Bank of England (BoE), will make a monetary policy announcement.

This will also include the Monetary Policy Report for the quarter, making this a Super-Thursday combo.

The markets expect that the BoE will raise the interest rate by 25 basis points to bring the key rate up to 4.5%. This is not likely to be the BoE’s last rate increase, given that UK inflation remains at double-digits of 10.1% with strong wage growth. Investors will be paying very close attention to the minutes, quarterly MPR and BoE Governor Andrew Bailey’s press…

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