Forex Strategy Video: GBPUSD and GBPJPY Will Look for Trend on BoE Minutes
• There are a range of trend and breakout opportunities across the sterling-based pairs
• The Pound has been pushed sharply higher in recent months on aggressive rate forecasting
• Should the BoE corroborate or crush the ambitious rate outlook, the sterling can see heavy volatility
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GBPUSD has been pushed to the edge of a multi-year congestion pattern on the back of a dollar tumble. The next push for break or reversal, though, likely rests with the pound. The sterling has surged in recent months on the backdrop of a sharp upgrade in rate forecasts. Despite the Bank of England's (BoE) forward guidance for rates to hold at their current, exceptionally low levels until 2016; the market has moved to price in a more timely upgrade to yields. These expectations have growth somewhat extreme - opening the market to a speculative gap from current conditions. Should the upcoming BoE minutes confirm or deny these forecasts, the sterling stands to experience extreme swings.
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