Talking Points:
- This is a video of an archived price action webinar from a previously-hosted session. To view our upcoming calendar of events, please navigate to our webinar calendar with the following link: Webinar Calendar.
- The focal-point for today’s discussion was the British Pound after this morning’s Bank of England rate decision in which the bank made no move to rates. Coming into today’s meeting, markets were pricing in an approximate 86% probability of a cut this morning. As we mentioned in this week’s GBP Forecast, August could be a more likely meeting for a rate cut given that the BOE is also releasing inflation forecasts and projections. This doesn’t necessarily eliminate the longer-term bearish bias; and could potentially even make that more attractive by allowing for a deeper top-side retracement to offer a better jump-off point for shorts ahead of next month’s expected rate cut.
- For a full technical setup, along with levels as discussed in today’s webinar, please read our technical analysis piece on GBP entitled, Rate Cut Waiting For August, Let it Rip for Now.
- We also looked at GBP/JPY, and here we have the prospect of a new trend in the Yen. For traders looking to get long GBP, there could be a burgeoning up-trend should Yen weakness continue in anticipation of more stimulus out of Japan. For the full technical setup in GBP/JPY, please read the article entitled, Top Side Burst May Have Room to Run.
--- Written by James Stanley, Analyst for DailyFX.com
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