Yesterday, we had another good trading day since forex trading signal on gold closed at profit, though the sell limit for the Nikkei remained intact. Today, we have to brace ourselves for ‘Super Thursday", a special day to trade the Sterling. Read ahead to find out what that means and how it should impact our trading…

What is Super Thursday?

Today at 11:00 (GMT), the Bank of England will publish the monetary policy statement, Monetary Policy Committee (MPC) meeting minutes, and the Inflation Report. Not only that but, Mark Carney, the Governor of the BOE, will also give a press conference at 11:30 (GMT).

In short, the economic calendar is full of highly significant fundamentals from the United Kingdom. This will cause all the Sterling pairs to rocket either north or south. We will have to wait and see which way they go!

How Could This Impact The Sterling?

Though I'm not expecting any change in the interest rate (0.25%) today there are some other factors that need our attention:

MPC Official Bank Rate Votes – Shows the intentions of MPC (Monetary Policy Committee) officials. As of now, it's forecasted at 2-0-6, representing that two of the members are in favor of hiking the rate.

If we see more than 2 members voting to hike the rate, that's going to make the pound bullish. So, keep an eye on it.

BOE Inflation Report is very significant and shows where the BOE sees inflation for the coming years. Based on this, the speculators draws forecasts of when the BOE will hike the interest rate and then starts pricing in the sentiment.

BOE Gov Carney Speaks – Lastly, the tone that Carney uses in his press conference will be closely watched. We need to understand his intentions, whether he want's to increase or decrease the rates in the future. This will decide the trend of the Pound until the next report. For tips on how to trade the news, make sure to check out FX Leaders News Trading Strategy article.

GBP/USD – The Most Highlighted Pair Today

Sterling is moving progressively upward, though today it's likely to resist below $1.3245 due to significant pressure caused by the Bank of England policy decision. Let's take a look at the technical side of the market.

The 2-hour chart outlook is pretty clear. Technically, the pair is carrying a bullish trend. Cable has recently broken above $1.3150, the double top resistance level. That means the same level will be working as a support now.

GBP/USD – 2-Hour Chart – Bullish Trendline  

In addition, we can see a bullish trend line and the 50 – periods moving average, both signaling the investors' bullish bias. Breakage of the trend line will open a room for selling until $1.3145 and below this, the Cable has the potential to go for $1.3095, most probably in the case of a dovish policy.

Whereas, if there is a hawkish monetary policy and breakage of $1.3245, this will lead the prices towards $1.3375, a bold target, but we can close partial profits along the way.

GBP/USD – Key Trading Levels

Support     Resistance

1.3081          1.3238

1.2924         1.3335

1.2827         1.3492

GBP/USD Trade Plan

It would be nice to wait for the $1.3245 break out as above this I'm seeing good buying potential, though this is just a contingency plan, as it all depends on the BOE & Mark Carney On the other hand, below the same level Cable can target $1.3150 and $1.3095. Good luck guys and trade with care!