Home GBP/USD: BoE Hike Could Lean GBP Some Support; RSI In Neutral Territory – Citi
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GBP/USD: BoE Hike Could Lean GBP Some Support; RSI In Neutral Territory – Citi

The Bank of England is set to raise rates to the highest levels since the financial crisis was at its peak. What technical levels should we look out for?

Here is their view, courtesy of eFXdata:

Citi discusses its expectations around the BoE policy meeting on Thursday.

“Macro data in the UK has stabilized somewhat recently, with Citi’s UK ESI now back in positive territory. This leaves the  Citi base case for an August MPC hike intact, which may support GBP.

The apparent shift in Brexit negotiations towards soft Brexit may also support GBP. But it has raised the probability of PM May being challenged/ the UK government changing with new Elections, which may undermine,” ” Citi notes.

As GBP/USD’s RSI stays at neutral territory, the pair may range trade between 1.2976-1.3511 in short-term, with limited downside,”

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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.