Pound Crosses Positioned for Breakout Before BoE's Super Thursday
- At quarterly intervals, the BoE's Inflation report accompanies the rate decision
- While trend via BoE rate speculation has proven difficult to muster, these events can spark volatility and trend
- Many of the Pound crosses - GBPUSD, EURGBP, GBPAUD and others - are well-positioned with immediate technicals
See how retail traders are positioning in the Pound pairs ahead of the BoE event using the FXCM SSI readings on DailyFX's sentiment page.
There is a range of remarkable technical setups across the Pound pairs heading into the Bank of England's quarterly meeting. This particular meeting is one of those referred to as 'Super Thursday'. Not only will the central bank announce its policy stance and give a statement with vote count, but it will offer up its quarterly inflation report. Since the BoE is very unlikely to change policy and has stuck to a vague and distant time frame for the inevitable, first normalization move; detail is necessary for speculators to shape their forecasts. If the Sterling crosses were in the middle of broad ranges, this event may generate limited opportunity. However, the technicals are in fact intense with many pairs primed for short-term breaks while others seem to set the stage for trend development. What can we expect from this rate decision given this backdrop? Will monetary policy be able to overcome Brexit fears for momentum? We discuss the strategy and trading for this event in today's Strategy Video.
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