Home GBP/USD: Range and projected BOE action

GBP/USD: Range and projected BOE action

While the pound did make a huge rebound in the aftermath of the tragic killing of MP Jo Cox,  Brexit is still a big threat. Here are two opinion about the potential BOE action and the range for next week. Fasten your seatbelts:

Here is their view, courtesy of eFXnews:

GBP: BoE To Cut Interest Rates To Zero If Brexit Or To Hike In Q1 ’17 If Bremain – Danske

GBP/USD – BEARISH BIAS – (1.3800-1.4400)

As can be seen from chart, the polls have tightened considerably and  if the momentum continues we may well see ‘Leave’ ahead in most polls by the day of the referendum next Thursday. If that is the case, we would expect GBP/USD to be trading below the 1.4000 level as investors’ fears escalate.

The crucial objective for ‘Remain’ must be to get the focus to shift back to the economy where they have been strongest. The big event in the week ahead will be the last live TV debate taking place in Wembley Arena on Tuesday 21st. That will be the last real opportunity for each side to make their case and may prove important in shaping the final ‘don’t knows’. The positive in terms of reduced market volatility is the fact that the FOMC has maintained a cautious approach to additional monetary easing and that may limit dollar buying in the run up to the referendum.

Brexit phone polls weighted June 17 2016

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.