GBP/USD Set For More Losses Ahead of BoE Meeting

A return to safe-haven assets pushed the dollar higher today with the GBP/USD tumbling 0.5% lower as of 10:00 GMT on Thursday. We, therefore, sold the market before the interest rate decision in the UK in anticipation that the governor will push markets lower at this decision.

The Bank of England (BoE) lowered interest rates to 0.1% when the pandemic started, leaving little room for more stimulus. Investors expect that the central bank will keep rates unchanged today, which could put even more pressure on the GBP.

Meanwhile, the EU / UK trade talks have yet to reach any meaningful agreements, with negotiations seemingly at a stalemate, there’s little hope for upside when it comes to the sterling, at least for now. We sold at 1.2528 with SL at 1.2560 and open TP. The trade will be adjusted before the decision comes out to prevent further risk.

Frank Walbaum

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