Important Levels in the Pound Ahead of the BOE

The Bank of England is set to release its interest rate decision later today and as it stands there is a 90% chance of a hike. This raises two questions:

• Is there any more upside to come?
• What happens if they don’t hike?

There might not be much more room to go to the upside. I feel like 1.3300 might be a good level to the upside to use as a trading level. If they hike I would look to buy a pullback here.

If they don’t hike then I think we might take a big hit. To the downside, I think we will break 1.3100.

Either way, I think there will be volatility with this one, with some significant moves to the downside if we don’t get what the market is expecting.

GBP/USD – 240 min Chart.

ABOUT THE AUTHOR See More

Rowan Crosby

Asia-Pacific Analyst

Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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