GBPUSD Technical Update – Cable Rangebound Heading Into February
- Cable is trading in a mid-term range as highlighted on the following D1 chart. The 1.5000 key round number area has been pierced, but held as support over recent trading sessions.
- To the upside there are the range highs around 1.5268, with former support now potential resistance just below the 1.5500 area aligned with the 23.6% Fibonacci retrace of the last major swing lower closely aligned.
- The upcoming Bank of England interest rate decision is not viewed as a key event risk situation as the BOE is expected to continue with its current policy on Feb 5th.
- A Bloomberg News survey had each of the 41 economists anticipating the Monetary Policy Committee (MPC) sticking with a “wait-and-see” approach. With that said, BoE Governor Mark Carney has continued to warn U.K. businesses and home owners that higher borrowing-costs could be seen in the longer term.
GBPUSD D1 Chart